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 45,000 February 55,000 March 60,000 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
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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 of the coming year is:
January 45,000 February 55,000 March 60,000 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 6859d4f89f97fbf_1 gallons Ending inventory for January fill in the blank 6859d4f89f97fbf_2 gallons Ending inventory for February fill in the blank 6859d4f89f97fbf_3 gallons Beginning inventory for January fill in the blank 6859d4f89f97fbf_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 43677707a066fad_1 fill in the blank 43677707a066fad_2 Gallons per unit fill in the blank 43677707a066fad_3 fill in the blank 43677707a066fad_4 Gallons for production fill in the blank 43677707a066fad_5 fill in the blank 43677707a066fad_6 Desired ending inventory fill in the blank 43677707a066fad_7 fill in the blank 43677707a066fad_8 Needed fill in the blank 43677707a066fad_9 fill in the blank 43677707a066fad_10 Less: Beginning inventory fill in the blank 43677707a066fad_11 fill in the blank 43677707a066fad_12 Purchases fill in the blank 43677707a066fad_13 fill in the blank 43677707a066fad_14 Price per gallon $fill in the blank 43677707a066fad_15 $fill in the blank 43677707a066fad_16 Dollar purchases $fill in the blank 43677707a066fad_17 $fill in the blank 43677707a066fad_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 ba1f6e003fb9fb2_1 units Ending inventory for January fill in the blank ba1f6e003fb9fb2_2 units Ending inventory for February fill in the blank ba1f6e003fb9fb2_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 1b4c30fc4fea05a_1 fill in the blank 1b4c30fc4fea05a_2 Drums per unit fill in the blank 1b4c30fc4fea05a_3 fill in the blank 1b4c30fc4fea05a_4 Drums for production fill in the blank 1b4c30fc4fea05a_5 fill in the blank 1b4c30fc4fea05a_6 Desired ending inventory fill in the blank 1b4c30fc4fea05a_7 fill in the blank 1b4c30fc4fea05a_8 Needed fill in the blank 1b4c30fc4fea05a_9 fill in the blank 1b4c30fc4fea05a_10 Less: Beginning inventory fill in the blank 1b4c30fc4fea05a_11 fill in the blank 1b4c30fc4fea05a_12 Purchases fill in the blank 1b4c30fc4fea05a_13 fill in the blank 1b4c30fc4fea05a_14 Price per drum $fill in the blank 1b4c30fc4fea05a_15 $fill in the blank 1b4c30fc4fea05a_16 Dollar purchases $fill in the blank 1b4c30fc4fea05a_17 $fill in the blank 1b4c30fc4fea05a_18
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