Zortek Corp. budgets production of 320 units in January and 390 units in February. Each finished unit requires four pounds of raw material Z, which costs $3 per pound. Each months ending inventory of raw materials should be 40% of the following months budgeted production. The January 1 raw materials inventory has 130 pounds of Z. Prepare a direct materials budget for January.

ZORTEK CORP. Direct Materials Budget For Month Ended January 31 Budget production (units) Materials requirements per unit Materials needed for production (lbs.) units lbs. Total materials requirements (lbs.) lbs. lbs. lbs. lbs. Olbs. Materials to be purchased (lbs.) per lb. Total cost of direct materials purchases