Anticipated sales for Safety Grip Company were 48,000 passenger car tires and 14,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: Passenger Car Truck Rubber 32 lb. per unit 75 lb. per unit Steel belts 3 lb. per unit 8 lb. per unit The purchase prices of rubber and steel are $3.6 and $4.7 per pound, respectively. The desired ending inventories of rubber and steel belts are 45,000 and 9,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 53,000 and 7,000 pounds, respectively. Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 20Y8. When required, enter unit prices to the nearest cent.
Anticipated sales for Safety Grip Company were 48,000 passenger car tires and 14,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: Passenger Car Truck Rubber 32 lb. per unit 75 lb. per unit Steel belts 3 lb. per unit 8 lb. per unit The purchase prices of rubber and steel are $3.6 and $4.7 per pound, respectively. The desired ending inventories of rubber and steel belts are 45,000 and 9,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 53,000 and 7,000 pounds, respectively. Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 20Y8. When required, enter unit prices to the nearest cent.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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12. Anticipated sales for Safety Grip Company were 48,000 passenger car tires and 14,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows:
| Passenger Car | Truck | |
| Rubber | 32 lb. per unit | 75 lb. per unit |
| Steel belts | 3 lb. per unit | 8 lb. per unit |
The purchase prices of rubber and steel are $3.6 and $4.7 per pound, respectively. The desired ending inventories of rubber and steel belts are 45,000 and 9,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 53,000 and 7,000 pounds, respectively.
Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 20Y8. When required, enter unit prices to the nearest cent.
Transcribed Image Text:Safety Grip Company
Direct Materials Purchases Budget
For the Year Ending December 31, 20Y8
Rubber
Steel Belts
Total
Pounds required for production:
Passenger tires
Ib.
Ib.
Truck tires
Total pounds required
Ib.
Ib.
Total units purchased
Ib.
Ib.
Unit price
Total direct materials to be purchased
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