Direct Materials Purchases Budget Anticipated sales for Solid Grip Company were 60,000 passenger car tires and 18,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: Rubber Steel belts Passenger Car 29 lb. per unit 3 lb. per unit Truck The purchase prices of rubber and steel are $3.00 and $3.90 per pound, respectively. The desired ending inventories of rubber and steel belts are 56,000 and 12,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 66,000 and 10,000 pounds, respectively. 68 lb. per unit 8 lb. per unit Prepare a direct materials purchases budget for Solid Grip Company for the year ended December 31, 20Y8. When required, enter unit prices to the nearest cent. Pounds required for production: Passenger tires Truck tires Solid Grip Company Direct Materials Purchases Budget For the Year Ending December 31, 20Y8 Steel Belts Total pounds required Total pounds to be purchased Unit price (per pound) Total direct materials to be purchased x $ Rubber lb. lb. lb. x $ lb. lb. lb. Total
Direct Materials Purchases Budget Anticipated sales for Solid Grip Company were 60,000 passenger car tires and 18,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: Rubber Steel belts Passenger Car 29 lb. per unit 3 lb. per unit Truck The purchase prices of rubber and steel are $3.00 and $3.90 per pound, respectively. The desired ending inventories of rubber and steel belts are 56,000 and 12,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 66,000 and 10,000 pounds, respectively. 68 lb. per unit 8 lb. per unit Prepare a direct materials purchases budget for Solid Grip Company for the year ended December 31, 20Y8. When required, enter unit prices to the nearest cent. Pounds required for production: Passenger tires Truck tires Solid Grip Company Direct Materials Purchases Budget For the Year Ending December 31, 20Y8 Steel Belts Total pounds required Total pounds to be purchased Unit price (per pound) Total direct materials to be purchased x $ Rubber lb. lb. lb. x $ lb. lb. lb. Total
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Direct Materials Purchases Budget
Anticipated sales for Solid Grip Company were 60,000 passenger car tires and 18,000
truck tires. Rubber and steel belts are used in producing passenger car and truck tires as
follows:
Rubber
Steel belts
Passenger Car
29 lb. per unit
68 lb. per unit
3 lb. per unit 8 lb. per unit
The purchase prices of rubber and steel are $3.00 and $3.90 per pound, respectively.
The desired ending inventories of rubber and steel belts are 56,000 and 12,000 pounds,
respectively. The estimated beginning inventories for rubber and steel belts are 66,000
and 10,000 pounds, respectively.
Truck
Prepare a direct materials purchases budget for Solid Grip Company for the year ended
December 31, 20Y8. When required, enter unit prices to the nearest cent.
Solid Grip Company
Direct Materials Purchases Budget
For the Year Ending December 31, 20Y8
Steel Belts
Pounds required for production:
Passenger tires
Truck tires
Total pounds required
Total pounds to be purchased
Unit price (per pound)
Total direct materials to be purchased
x $
Rubber
lb.
lb.
lb.
x $
lb.
lb.
lb.
Total
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