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Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 58,000 passenger car tires and 17,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: Passenger Car Truck Rubber 29 Ibs. per unit 68 Ibs. per unit Steel belts 7 Ibs. per unit 18 Ibs. per unit The purchase prices of rubber and steel are $3.10 and $4.10 per pound, respectively. The desired ending inventories of rubber and steel belts are 55,000 and 11,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 64,000 and 9,000 pounds, respectively. Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 20Y9. Safety Grip Company Direct Materials Purchases Budget For the Year Ending December 31, 20Y9 Rubber Steel Belts Total Pounds required for production: Passenger tires 1,682,000 V Ibs. 3,944,000 x Ibs. Truck tires 119,000 X 306,000 V Desired inventory, December 31, 20Y9 v 55,000 11,000 V Total pounds available 1,856,000 x Ibs. 4,261,000 X Ibs. Estimated inventory, January 1, 20Y9 64,000 V 9,000 V Total units purchased 1,792,000 X Ibs. 4,252,000 X Ibs. Unit price 3.10 V 4.10 V Total direct materials to be purchased $ 555,200 X 17,433,200 X

Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 58,000 passenger car tires and 17,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: Passenger Car Truck Rubber 29 Ibs. per unit 68 Ibs. per unit Steel belts 7 Ibs. per unit 18 Ibs. per unit The purchase prices of rubber and steel are $3.10 and $4.10 per pound, respectively. The desired ending inventories of rubber and steel belts are 55,000 and 11,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 64,000 and 9,000 pounds, respectively. Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 20Y9. Safety Grip Company Direct Materials Purchases Budget For the Year Ending December 31, 20Y9 Rubber Steel Belts Total Pounds required for production: Passenger tires 1,682,000 V Ibs. 3,944,000 x Ibs. Truck tires 119,000 X 306,000 V Desired inventory, December 31, 20Y9 v 55,000 11,000 V Total pounds available 1,856,000 x Ibs. 4,261,000 X Ibs. Estimated inventory, January 1, 20Y9 64,000 V 9,000 V Total units purchased 1,792,000 X Ibs. 4,252,000 X Ibs. Unit price 3.10 V 4.10 V Total direct materials to be purchased $ 555,200 X 17,433,200 X

FINANCIAL ACCOUNTING
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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Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 58,000 passenger car tires and 17,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: Passenger Car Truck Rubber 29 Ibs. per unit 68 Ibs. per unit Steel belts 7 Ibs. per unit 18 Ibs. per unit The purchase prices of rubber and steel are $3.10 and $4.10 per pound, respectively. The desired ending inventories of rubber and steel belts are 55,000 and 11,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 64,000 and 9,000 pounds, respectively. Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 20Y9. Safety Grip Company Direct Materials Purchases Budget For the Year Ending December 31, 20Y9 Rubber Steel Belts Total Pounds required for production: Passenger tires 1,682,000 V Ibs. 3,944,000 X Ibs. Truck tires 119,000 X 306,000 Desired inventory, December 31, 20Y9 V 55,000 V 11,000 Total pounds available 1,856,000 X Ibs. 4,261,000 X Ibs. Estimated inventory, January 1, 20Y9 V 64,000 V 9,000 Total units purchased 1,792,000 X Ibs. 4,252,000 X Ibs. Unit price x $ 3.10 4.10 Total direct materials to be purchased 555,200 X $4 17,433,200 X Accounting numeric field %24
Transcribed Image Text:Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 58,000 passenger car tires and 17,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: Passenger Car Truck Rubber 29 Ibs. per unit 68 Ibs. per unit Steel belts 7 Ibs. per unit 18 Ibs. per unit The purchase prices of rubber and steel are $3.10 and $4.10 per pound, respectively. The desired ending inventories of rubber and steel belts are 55,000 and 11,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 64,000 and 9,000 pounds, respectively. Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 20Y9. Safety Grip Company Direct Materials Purchases Budget For the Year Ending December 31, 20Y9 Rubber Steel Belts Total Pounds required for production: Passenger tires 1,682,000 V Ibs. 3,944,000 X Ibs. Truck tires 119,000 X 306,000 Desired inventory, December 31, 20Y9 V 55,000 V 11,000 Total pounds available 1,856,000 X Ibs. 4,261,000 X Ibs. Estimated inventory, January 1, 20Y9 V 64,000 V 9,000 Total units purchased 1,792,000 X Ibs. 4,252,000 X Ibs. Unit price x $ 3.10 4.10 Total direct materials to be purchased 555,200 X $4 17,433,200 X Accounting numeric field %24
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