Requirement Prepare the Direct Materials Budget for Mitchell Inc. Company. Company policy calls for a given quarter's ending raw materials inventory to equal 50% of next quarter's expected materials needed for production. The prior year-end inventory is 378 lbs of materials, which complies with the policy. The company expects to have 720 lbs. of materials in inventory at year-end. The product's manufacturing cost is $121 per unit, including per unit costs of $52 for materials (4 lbs. at $13 per lb.), $44 for direct labor (2 hours x $22 direct labor rate per hour), $17 for variable overhead, and $8 for fixed overhead. Show less* Direct Materials Budget For the year ended December 31, 2018 Materials needed for production (pounds) Total materials requirements (pounds) Materials to be purchased (pounds) Total cost of direct materials purchases