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 $43,800$

February $41,000$

March $50,250$

Each drum requires $5\mathrm{.}5$ 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 $$2\mathrm{.}00.$ The cost of one drum is $$1\mathrm{.}60.$

Required:

Question Content Area

$1.$ 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 fill in the blank $541$f$3$a$09507$ffe$8\_1$

gallons

Ending inventory for January fill in the blank $541$f$3$a$09507$ffe$8\_2$

gallons

Ending inventory for February fill in the blank $541$f$3$a$09507$ffe$8\_3$

gallons

Beginning inventory for January fill in the blank $541$f$3$a$09507$ffe$8\_4$

gallons

Question Content Area

$2.$ 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 fill in the blank $1$df$11401$c$028014\_1$

fill in the blank $1$df$11401$c$028014\_2$

Gallons per unit fill in the blank $1$df$11401$c$028014\_3$

fill in the blank $1$df$11401$c$028014\_4$

Gallons for production fill in the blank $1$df$11401$c$028014\_5$

fill in the blank $1$df$11401$c$028014\_6$

Desired ending inventory fill in the blank $1$df$11401$c$028014\_7$

fill in the blank $1$df$11401$c$028014\_8$

Needed fill in the blank $1$df$11401$c$028014\_9$

fill in the blank $1$df$11401$c$028014\_10$

Less: Beginning inventory fill in the blank $1$df$11401$c$028014\_11$

fill in the blank $1$df$11401$c$028014\_12$

Purchases fill in the blank $1$df$11401$c$028014\_13$

fill in the blank $1$df$11401$c$028014\_14$

Price per gallon $fill in the blank $1$df$11401$c$028014\_15$

$fill in the blank $1$df$11401$c$028014\_16$

Dollar purchases $fill in the blank $1$df$11401$c$028014\_17$

$fill in the blank $1$df$11401$c$028014\_18$

Question Content Area

$3.$ 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 fill in the blank f$563$e$90$ad$029$fa$4\_1$

units

Ending inventory for January fill in the blank f$563$e$90$ad$029$fa$4\_2$

units

Ending inventory for February fill in the blank f$563$e$90$ad$029$fa$4\_3$

units

Question Content Area

$4.$ 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

January February

Production in units fill in the blank c$9$a$3$b$7$ffffbafd$9\_1$

fill in the blank c$9$a$3$b$7$ffffbafd$9\_2$

Drums per unit fill in the blank c$9$a$3$b$7$ffffbafd$9\_3$

fill in the blank c$9$a$3$b$7$ffffbafd$9\_4$

Drums for production fill in the blank c$9$a$3$b$7$ffffbafd$9\_5$

fill in the blank c$9$a$3$b$7$ffffbafd$9\_6$

Desired ending inventory fill in the blank c$9$a$3$b$7$ffffbafd$9\_7$

fill in the blank c$9$a$3$b$7$ffffbafd$9\_8$

Needed fill in the blank c$9$a$3$b$7$ffffbafd$9\_9$

fill in the blank c$9$a$3$b$7$ffffbafd$9\_10$

Less: Beginning inventory fill in the blank c$9$a$3$b$7$ffffbafd$9\_11$

fill in the blank c$9$a$3$b$7$ffffbafd$9\_12$

Purchases fill in the blank c$9$a$3$b$7$ffffbafd$9\_13$

fill in the blank c$9$a$3$b$7$ffffbafd$9\_14$

Price per drum $fill in the blank c$9$a$3$b$7$ffffbafd$9\_15$

$fill in the blank c$9$a$3$b$7$ffffbafd$9\_16$

Dollar purchases $fill in the blank c$9$a$3$b$7$ffffbafd$9\_17$

$fill in the blank c$9$a$3$b$7$ffffbafd$9\_1$