Preparing a Direct Materials Purchases Budget Patrick Inc. makes industrial solvents sold in 5-gallon drum containers. Planned production in units for the first 3 months of the coming year is: January February March 43,800 41,000 50,250 Each drum requires 5.5 gallons of chemicals and one plastic drum container. 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 $1.60.1 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? Round your answers to the nearest whole gallon. Ending inventory for December 36,135 gallons Ending Inventory for January 33,825 gallons Ending inventory for February 41,456 gallons Beginning inventory for January 36,135 gallons 2. Prepare a direct materials purchases budget for chemicals for the months of January and February. Do not include a multiplication symbol as part of your answer. Patrick Inc. Direct Materials Purchases Budget Chemicals in Gallons For the Months of January and February January February Production in units 43.800 41.000 Gallons per unit 240,900 225,500 Gallons for production Desired ending inventory 33,025 41456 Needed Less: Beginning inventory Purchases Price per gallon Dollar purchases 3. Calculate the ending inventory of drume for December of the prior year and for January and February Printeriner anware in the na 3. Calculate the ending inventory of drums for December of the prior year, and for January and February. Round your answers to the nearest whole unit. Ending inventory for December units Ending inventory for January units Ending inventory for February units Feedback Check My Work 3. Multiply ending inventory percentage by next month's production and then by drums used per unit, one drum. Repeat for following months. Note ending inventory is beginning inventory for next month. 4. Prepare a direct materials purchases budget for drums for the months of January and February. Do not include a multiplication symbol as part of your answer. Patrick Inc. Direct Materials Purchases Budget - Drums For the Months of January and February Production in units Drums per unit January February 88 4. Prepare a direct materials purchases budget for drums for the months of January and February. Do not include a multiplication symbol as part of your answer. Patrick Inc. Direct Materials Purchases Budget Drums For the Months of January and February Production in units Drums per unit Drums for production Desired ending inventory Needed Less: Beginning Inventory Purchases Price per drum Dollar purchases January February Feedback