March 41.000 Brief Exercise 9-22 Preparing a Production Budget Patrick Inc. makes industrial solvents. In the first 4 months of the coming year, Patrick expects the following unit sales January 41.000 February 38,000 50,000 April 51,000 Patricks policy is to have 25% of next months sales in ending inventory On January 1, it is ex pected that there will be 6.700 drums of solvent on hand. Required: Prepare a production budget for the first quarter of the year. Show the number of drama that should be produced each month as well as for the quarter in total. Brief Exercise 9-23 Preparing a Direct Materials Purchases Budget Patrick Inc, makes industrial solvents sold in 5-gallon drums. Planned production in units for the first 3 months of the coming year is: January 43.800 February March 50,250 Each drum requires 55 gallons of chemicals and one plastic drum. Company policy requires that ending inventories of raw materials for each month be 15% of the next month's production needs. That 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 drum is $1.60. (Note: Round all unit amount to the nearest unit. Round all dollar amounts to the nearest dollar) Required: 1. Calculate the ending inventory of chemicals in gallons for December of the prior year and for January and February. What is the beginning inventory of chemicals for January! 2. Prepare a direct materials purchases budget for chemicals for the months of January and February 3. Calculate the ending inventory of drums for December of the prior year and for January and February 4. Prepare a direct materials purchases budget for drums for the month of January and February Brief Exercise 9-29 Preparing a Budgeted Income Statement Oliver Company provided the following information for the coming year: Units produced and sold 160,000 Cost of goods sold per unit Selling price Variable selling and administrative expenses per unit Fixed selling and administrative expenses S423.000 Tax rate Required: Prepare a budgeted income statement for Oliver Company for the coming year. (Note: Round all income statement amounts to the nearest dollar.) $6.30 S10.80 $1.10 35N