Direct materials purchases budget Anticipated sales for Safety Grip Company were 68,000 passenger car tires and 20,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: Passenger Car 32 lbs. per unit 7 lbs. per unit Rubber Steel belts The purchase prices of rubber and steel are $3.30 and $4.30 per pound, respectively. The desired ending inventories of rubber and steel belts are 64,000 and 13,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 75,000 and 11,000 pounds, respectively. Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 2019. Safety Grip Company Direct Materials Purchases Budget For the Year Ending December 31, 2019 Rubber Line Item Description Pounds required for production: Passenger tires Truck tires Truck 75 lbs. per unit 18 lbs. per unit Total pounds available Total units purchased Unit price Total direct materials to be purchased lbs. lbs. lbs. Steel Belts lbs. lbs. lbs. Accounting numeric field i Total

Direct materials purchases budget Anticipated sales for Safety Grip Company were 68,000 passenger car tires and 20,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: Passenger Car 32 lbs. per unit 7 lbs. per unit Rubber Steel belts The purchase prices of rubber and steel are $3.30 and $4.30 per pound, respectively. The desired ending inventories of rubber and steel belts are 64,000 and 13,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 75,000 and 11,000 pounds, respectively. Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 2019. Safety Grip Company Direct Materials Purchases Budget For the Year Ending December 31, 2019 Rubber Line Item Description Pounds required for production: Passenger tires Truck tires Truck 75 lbs. per unit 18 lbs. per unit Total pounds available Total units purchased Unit price Total direct materials to be purchased lbs. lbs. lbs. Steel Belts lbs. lbs. lbs. Accounting numeric field i Total

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 11E

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T4.
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