Zortek Corp. budgets production of 410 units in January and 380 units in February. Each finished unit requires one pounds of raw material Z, which costs $4 per pound. Each months ending inventory of raw materials should be 30% 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) units Ibs. Materials needed for production (Ibs.) lbs. Ibs. Total materials requirements (Ibs.) lbs. lbs. Materials to be purchased (lbs.) lbs. per lb Total cost of direct materials purchases || 2