Answer:
Purchases Budget for January 238,590 units
Purchases Budget for February 233,131 units
Dollar Purchases Budget for January $ 477,180
Dollar Purchases Budget for February $ 466,264
Explanation:
<u><em> Patrick Inc.</em></u>
<u><em>Direct Materials Purchases Budget - </em></u>
January February
Production in units 43,800 41,000
<u>Gallons per unit 5.5 5.5 </u>
<u>Gallons for production 240,900 225,500 </u>
Desired ending inventory 33,825 41,456
<u>Needed 274,725 266,956 </u>
Less: Beginning inventory 36,135 33,825
Purchases 238,590 233,131
Price per gallon $ 2.00 $ 2.00
<u>Dollar purchases $ 477,180 $ 466,264</u>
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Direct Materials Purchases budget is calculated by calculating the gallons per unit which is added to desired ending inventory and beginning inventory is deducted. The purchases units are multiplied with price per unit.
