4. Anticipated sales for Safety Grip Company were 42,000 passenger car tires and 19,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: Material Rubber Steel Passenger Car 36 lbs. per unit 4 lbs. per unit Truck 77 lbs. per unit 8 lbs. per unit The purchase prices of rubber and steel are $1.30 and $0.95 per pound, respectively. The de- sired ending inventories of rubber and steel belts are 40,000 and 10,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 46,000 and 8,000 pounds, respectively. Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 2020.

4. Anticipated sales for Safety Grip Company were 42,000 passenger car tires and 19,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: Material Rubber Steel Passenger Car 36 lbs. per unit 4 lbs. per unit Truck 77 lbs. per unit 8 lbs. per unit The purchase prices of rubber and steel are $1.30 and $0.95 per pound, respectively. The de- sired ending inventories of rubber and steel belts are 40,000 and 10,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 46,000 and 8,000 pounds, respectively. Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 2020.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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