Zortek Corporation budgets production of 500 units in January and 230 units in February. Each finished unit requires four pounds of material Z, which costs $2 per pound. Each month's ending inventory of material Z should be 40% of the following month's budgeted production. The January 1 inventory has 800 pounds of material Z. Prepare a direct materials budget for January. ZORTEK CORPORATION Direct Materials Budget January Units to produce 500 units Materials required per unit (Pounds) 4 pounds Materials needed for production (Pounds) 2,000 pounds Add: Desired ending materials inventory 368 pounds Total materials required (Pounds) 2,368 pounds Less: Beginning materials inventory (pounds) 800 pounds Materials to purchase (Pounds) 1,568 pounds Materials to purchased 2 per pound Cost of direct materials purchases 3,136