Your answer is partially correct. Sheridan Company has 2,280 pounds of raw materials in its December 31, 2021, ending inventory. Required production for January and February of 2022 are 4,560 and 5,700 units, respectively. 2 pounds of raw materials are needed for each unit, and the estimated cost per pound is $6. Management desires an ending inventory equal to 25% of next month's materials requirements Prepare the direct materials budget for January. SHERIDAN COMPANY Direct Materials Budget For the Month Ending January 31, 2022 Units to be Produced 3520 Direct Materials Per Unit 2 Total Pounds Required for Production 7040 Add : Desired Ending Inventory 2200 Total Materials Required 9240 Less Beginning Materials Inventory 1760 SHERIDAN COMPANY Direct Materials Budget For the Month Ending January 31, 2022 ~ Units to be Produced - 3520 Direct Materials Per Unit 2 Total Pounds Required for Production 7040 Add v Desired Ending Inventory 2200 Total Materials Required 9240 Less v Beginning Materials Inventory 1760 Direct Materials Purchases 7480 Cost Per Pound 6 Total Cost of Direct Materials Purchases 44880