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: Each drum requires 5.5 gallons of chemicals and one plastic drum. Company policy requires that ending inventorles of raw materials for each month be 25% 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 $1.70. The cost on drum is $1.30. This information has been collected in the Microsoft Excel Online flle. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. 2. Prepare a direct materlals purchases budget for chemicals for the months of January and February. Do not round intermediate calculations. Round dollar purchases to the nearest dollar. Round gallons per unit to one decimal place. Round price per gallon to the nearest cent. Round all the other the nearest whole unit. Do not include a multiplication symbol as part of your answer. Patrick Inc. Direct Materials Purchases Budaet - Chemicals in Gallons 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. 4. Prepare a direct materlals purchases budget for drums for the months of January and February. Do not round intermediate calculations. Round dollar purchase to the nearest dollar. Round price per drum to the nearest cent. Round all the other values to the nearest whole unit. Do not include a multiplication symbol as part of your answer. Patrick Inc