13 141 15 16 17 18 19 Hank Manufacturing makes cleaning solvent sold in large containers with a plastic liner. Each container consists of: 6 gallons of chemicals 1 plastic liner Planned production (in units) for next quarter Is: January February March 43,800 units 41,000 units 50,250 units Company policy requires that ending inventories of raw materials for each month be 15% of the next month's production needs. The policy was met for the ending inventory of December in the prior year. The cost of one gallon of chemicals is $2.00. Th cost of one liner is $1.60. 1. Calculate the ending inventory of chemicals (in gallons) for December of the prior year, and then for January and February. (3 points-must use a formula/calculation in each cell) December, ending inventory January, ending inventory February, ending inventory gallons gallons gallons 2. Calculate the ending inventory of plastic coating (in units) for December of the prior year, and then for January and February. (3 points-must use a formula/calculation in each cell) 20 21 December, ending inventory 22 January, ending inventory 23 February, ending inventory 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 liners liners liners 3. Complete a direct materials purchases budget for the chemicals (in gallons) for January. (10 points-must use a formula/calculation when necessary). Hint: Remember to use accounting underlining! Production (in units) Hank Manufacturing Direct Materials Purchases Budget for Chemicals Gallons per container Gallons for production Desired ending inventory Inventory Needed Less: Beg. Inventory Total Purchases Price per gallon Dollar Value of Purchases For the Month of January 4. Complete a direct materials purchases budget for the plastic liners for February. (10 points-must use a formula/calculation when necessary). Hint: Remember to use accounting underlining! Hank Manufacturing Direct Materials Purchases Budget for Plastic Liners For the Month of February Production (in units) Liners per container Liners for production Desired ending inventory Inventory Needed Less: Beg. Inventory Total Purchases Price per liner Dollar Value of Purchases