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 Ending inventory for January Ending inventory for February Beginning inventory for January gallons gallons gallons gallons 2. Prepare a direct materials 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 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 Production in units Gallons per unit Gallons for production Desired ending inventory Needed Less: Beginning inventory Purchases Price per gallon Dollar purchases January February $ $ $ $ 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 Ending inventory for January Ending inventory for February drum drum drum 4. Prepare a direct materials purchases budget for drums for the months of January and February. Do not round intermediate calculations. Round dollar purchases 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. Direct Materials Purchases Budget - Drums For the Months of January and February Production in units Drums per unit Drums for production Desired ending inventory Needed Less: Beginning inventory Purchases Price per drum Dollar purchases January February $

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 5PA: Dymac Appliances uses the periodic inventory system. Details regarding the inventory of appliances...

See similar textbooks

Related questions

Question

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:

Month	Units
January	43,800
February	40,800
March	49,000

Each drum requires 5.5 gallons of chemicals and one plastic drum. Company policy requires that ending inventories of raw materials for each month be 10% 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 $1.60. The cost of one drum is $1.20.

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
Ending inventory for January
Ending inventory for February
Beginning inventory for January
gallons
gallons
gallons
gallons
2. Prepare a direct materials 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 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
Production in units
Gallons per unit
Gallons for production
Desired ending inventory
Needed
Less: Beginning inventory
Purchases
Price per gallon
Dollar purchases
January
February
$
$
$
$

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
Ending inventory for January
Ending inventory for February
drum
drum
drum
4. Prepare a direct materials purchases budget for drums for the months of January and February. Do not round intermediate calculations. Round dollar purchases 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.
Direct Materials Purchases Budget - Drums
For the Months of January and February
Production in units
Drums per unit
Drums for production
Desired ending inventory
Needed
Less: Beginning inventory
Purchases
Price per drum
Dollar purchases
January
February
$

AI-Generated Solution

AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.

Unlock instant AI solutions

Tap the button
to generate a solution

Click the button to generate
a solution

SEE SOLUTION