Answer:
1) 36,135 gallons
2) direct materials budget - chemicals
January February March
units to be produced 43,800 41,000 50,250
<u>direct materials per unit 5.5 5.5 5.5 </u>
total direct materials 240,900 225,500 276,375
+ ending inventory 33,825 41,456 -
<u>- beginning inventory -36,135 -33,825 -41,457 </u>
direct materials purchase 238,590 233,131 -
<u>cost per unit $2 $2 $2 </u>
cost of direct materials $477,180 $466,262 -
3) ending inventory for December 6,570 drums
ending inventory for January 6,150 drums
ending inventory for February 7,538 drums
4) direct materials budget - drums
January February March
units to be produced 43,800 41,000 50,250
<u>direct materials per unit 1 1 1 </u>
total direct materials 43,800 41,000 50,250
+ ending inventory 6,150 7,538 -
<u>- beginning inventory -6,570 -6,150 -7,538 </u>
direct materials purchase 43,380 42,388 -
<u>cost per unit $1.60 $1.60 $1.60 </u>
cost of direct materials $69,408 $67,820.80 -
Explanation:
planned production:
January 43,800
February 41,000
March 50,250
each drum requires 5.5 gallons of chemicals and 1 plastic drum
