Selva Inc. makes keyboards for tablets, and packages them in crates containing $50$ keyboards per crate. Planned production in units for the first three months of the coming year is:

January

$43,800$

February

$41,000$

March

$50,250$

Each keyboard requires two litres of chemicals and one plastic crate. Company policy requires that ending inventories of raw materials for each month be $15$ percent of the next month$$s production needs. That policy was met for the ending inventory of December in the prior year. The cost of one litre of chemicals is $$0\mathrm{.}50.$ The cost of one crate is $$1\mathrm{.}60.($Note: Round all dollar amounts to the nearest dollar.$)$

Required:

Calculate the ending inventory of chemicals in litres for December of the prior year, and for January and February. What is the beginning inventory of chemicals for January?

Prepare a direct materials purchases budget for chemicals for the months of January and February.