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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

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 40,000
February 55,000
March 65,000

Each drum requires 6 gallons of chemicals and one plastic drum container. Company policy requires that ending inventories of raw materials for each month be 20% 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.

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 fill in the blank 101decfc4038fb5_1 gallons
Ending inventory for January fill in the blank 101decfc4038fb5_2 gallons
Ending inventory for February fill in the blank 101decfc4038fb5_3 gallons
Beginning inventory for January fill in the blank 101decfc4038fb5_4 gallons

2. Prepare a direct materials purchases budget for chemicals for the months of January and February. Round Dollar purchases to the nearest dollar. Round all the other values to the nearest whole unit. 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 3d90c2faffbb050_1 fill in the blank 3d90c2faffbb050_2
Gallons per unit fill in the blank 3d90c2faffbb050_3 fill in the blank 3d90c2faffbb050_4
Gallons for production fill in the blank 3d90c2faffbb050_5 fill in the blank 3d90c2faffbb050_6
Desired ending inventory fill in the blank 3d90c2faffbb050_7 fill in the blank 3d90c2faffbb050_8
Needed fill in the blank 3d90c2faffbb050_9 fill in the blank 3d90c2faffbb050_10
Less: Beginning inventory fill in the blank 3d90c2faffbb050_11 fill in the blank 3d90c2faffbb050_12
Purchases fill in the blank 3d90c2faffbb050_13 fill in the blank 3d90c2faffbb050_14
Price per gallon $fill in the blank 3d90c2faffbb050_15 $fill in the blank 3d90c2faffbb050_16
Dollar purchases $fill in the blank 3d90c2faffbb050_17 $fill in the blank 3d90c2faffbb050_18

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 007c5d010049fa2_1 units
Ending inventory for January fill in the blank 007c5d010049fa2_2 units
Ending inventory for February fill in the blank 007c5d010049fa2_3 units

4. Prepare a direct materials purchases budget for drums for the months of January and February. Round Dollar purchases to the nearest dollar. Round all the other values to the nearest whole unit. 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 3a9517fc7034fd1_1 fill in the blank 3a9517fc7034fd1_2
Drums per unit fill in the blank 3a9517fc7034fd1_3 fill in the blank 3a9517fc7034fd1_4
Drums for production fill in the blank 3a9517fc7034fd1_5 fill in the blank 3a9517fc7034fd1_6
Desired ending inventory fill in the blank 3a9517fc7034fd1_7 fill in the blank 3a9517fc7034fd1_8
Needed fill in the blank 3a9517fc7034fd1_9 fill in the blank 3a9517fc7034fd1_10
Less: Beginning inventory fill in the blank 3a9517fc7034fd1_11 fill in the blank 3a9517fc7034fd1_12
Purchases fill in the blank 3a9517fc7034fd1_13 fill in the blank 3a9517fc7034fd1_14
Price per drum $fill in the blank 3a9517fc7034fd1_15 $fill in the blank 3a9517fc7034fd1_16
Dollar purchases $fill in the blank 3a9517fc7034fd1_17 $fill in the blank 3a9517fc7034fd1_18

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