Purchases Budget Additional Background Sandy explains that purchases of Direct Material (in Wrenches' case Diesel Fuel) are dependent on: Direct Materials required to meet Sales forecast + Desired ending inventory of Direct Materials - Beginning inventory of Direct Materials =Amount of required purchases of Direct Materials Wrenches estimates that the cost of diesel fuel will be $4.95 per gallon in the first two quarters but expects prices to rise in the summer (the third quarter) to $4.75 per gallon. He expects prices to continue to fall in autumn to the $4.50 per gallon range for the fourth quarter. Further, he would like to maintain an ending inventory of 30% of expected sales in the following quarter. Wrenches stated that the beginning inventory of Diesel Fuel was 250,000 gallons that were purchased at a price of $3.90 per gallon. He expects to sell 1,950,000 gallons in the first quarter on next year. Reminder You are to work alone on this case and contact the instructor if you have questions or problems. Refer to Illustration 9.9 on page 9-11 of your text if you need an example of a purchases budget in Excel. 2. Prepare a one-year Purchases Budget 2.1. In your Gasoline AlleyBudget.xlsm open the worksheet named Purchases Budget 2.2. In Rows 1, 2, and 3 insert the following title information: Gasoline Alley Garage Purchases Budget For the year ending December 31, 2020 2.3. Starting in Cell 85 insert the following Column headings and center the headings First Quarter Second Quarter Third Quarter Fourth Quarter Total 2.4. Starting in Cell A7 insert the following Row headings: Amount Required to meet Sales Budget Desired Ending Inventory Total Fuel required Beginning Inventory Required Purchases A blank row Wholesale price per gallon