Yada expects to produce 1,950 units in January and 2,120 units in February. The company budgets 4 pounds per unit of direct materials at a cost of $45 per pound. Indirect materials are insignificant and not considered for budgeting purposes. The balance in the Raw Materials Inventory account (all direct materials) on January 1 is 5,700 pounds. Yada desires the ending balance in Raw Materials Inventory to be 40% of the next month's direct materials needed for production. Desired ending balance for February is 4,000 pounds. Prepare Yada's direct materials budget for January and February. Begin by preparing the direct materials budget for January and February through total direct materials needed line and then complete the budget by calculating the budgeted cost of direct materials purchases. Yada Company Direct Materials Budget Two Months Ended January 31 and February 28 Direct materials (pounds) per unit Direct materials needed for production Plus: Total direct materials needed Less: Budgeted purchases of direct materials Direct materials cost per pound Budgeted cost of direct materials purchases January February