Exercise 11 It takes 5 lbs tomatoes to make a jar of Luigi's tomato sauce. Luigi starts January with 100 lbs of tomatoes and wants to keep an ending inventory equal to 10% of tomatoes needed for next month's production. Tomatoes cost Luigi 20 cents a pound. Prepare a direct materials budget Month Jars Needed January 220 February 240 March 220 April 260 January February March (show subtractions as negative #'s) Required production (in units) x Raw materials needed per unit (lb) = Production needs (lbs) + Desired ending inventory (lbs) - Beginning inventory (lbs) = Raw materials to be purchased (lbs) x Cost per raw material (per lb) = Cost of raw material purchases x X X x x x x x x x