Question

please answer all

Preparing a Diect Materials Prchases Budget Patrick Inc, makes industral solvents sold in 5-gallon drum containers. Planned production in units for the fiest 3 moeths of the coming year anuary 45.000 ebuary 55.000 March 60.000 Each drum requires&galons of chemicals and one plastic drum container Company policy ruis that nding stor of aw maerials for each month be 20% of the et month's preduction needs. That policy sas met for the endng inventory of December in the por yea The cost of one galen of chemicals is $2.00 The cost of one dem is 1.6 Required 1. Calculate the ending inventory of chemicals in gallons for December of the prier yea and for January and February, What is the beginning inventory of chemicals for January Round your answers to the nearest hole gallon Ending inventory for December galons Ending investory for January gallons Ending inventory for February7 gallons Beginning inventory for January gallons

Answer 1

Answer 1
Ending inventory for December	51,600	gallons
Ending inventory for January	66,000	gallons
Ending inventory for February	72,000	gallons
Beginning inventory for January	51,600	gallons

Calculated as

Gallons required for units produced
	Per Drum Required		Production
January	6	x	43000	=	258000
February	6	x	55000	=	330000
March	6	x	60000	=	360000
Ending Inventory of Chemicals in gallons
December	20%	x	258,000	=	51,600
January	20%	x	330,000	=	66,000
February	20%	x	360,000	=	72,000

Answer 2 Direct Material Purchase Budget of Chemicals in Gallons

Patrick Inc.
Direct Materials Purchase Budget-Chemicals in Gallons
For the Months of January and February
	January	February
Production in units	43000	55000
Gallons per unit	6	6
Gallons for production	258000	330000
Desired ending inventory	66000	72000
Needed	324000	402000
Less: Beginning inventory	51600	66000
Purchases	272400	336000
price per gallon	$                     2	$                        2
Dollar Purchases	$        544,800	$           672,000

Answer 3
Ending inventory for December	8600	Units
Ending inventory for January	11000	Units
Ending inventory for February	12000	Units

Calculated as

Ending Inventory of Drums
December	20%	x	43000	=	8600
January	20%	x	55000	=	11000
February	20%	x	60000	=	12000

Answer 4

Patrick Inc.
Direct Materials Purchase Budget-Drums
For the Months of January and February
	January	February
Production in units	43000	55000
Drums per unit	1	1
Gallons for production	43000	55000
Desired ending inventory	11000	12000
Needed	54000	67000
Less: Beginning inventory	8600	11000
Purchases	45400	56000
price per gallon	$               1.60	$                  1.60
Dollar Purchases	$          72,640	$             89,600

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