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

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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