Hank Manufacturing makes cleaning solvent sold in large container with a plastic liner. Their monthly sales forecast consists of: January 40,000 units, February 38,500 units, and March 39,750 units. Desired ending inventory of finished goods (in units) is 10% of the next month's sales forecast.
Planned production (in units) for next quarter is:
January	43,800	units
February	41,000	units
March	50,250	units
Further, each container of cleaning solvent consists of:
6	gallons of chemicals
1	plastic liner
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. The cost of one liner is $1.60.

1. How do I create a direct materials purchases budget for the chemicals (in gallons) for January. (must use a formula/calculation when necessary). All required formatting for a financial statement must be included!

2. Now assuming that the cleaning solvent has a unit product cost of $5.25. How can I prepare an ending inventory budget of finished goods for the month of January. (must use a formula/calculation when necessary). All required formatting for a financial statement must be included!