Zortek Corp. budgets production of 390 units in January and 400 units in February. Each finished unit requires five pounds of raw material Z, which costs $4 per pound. Each months ending inventory of raw materials should be 50% of the following months budgeted production. The January 1 raw materials inventory has 170 pounds of Z. Prepare a direct materials budget for January.

ZORTEK CORP.
Direct Materials Budget
For Month Ended January 31
Budget production (units)		units
		lbs.
Materials needed for production (lbs.)		lbs.
		lbs.
Total materials requirements (lbs.)		lbs.
		lbs.
Materials to be purchased (lbs.)	0	lbs.
		per lb.
Total cost of direct materials purchases