Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 20Y9.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Direct Materials Purchases Budget

Anticipated sales for Safety Grip Company were 47,000 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 28 lbs. per unit 65 lbs. per unit
Steel belts 4 lbs. per unit 10 lbs. per unit

The purchase prices of rubber and steel are $3.60 and $4.70 per pound, respectively. The desired ending inventories of rubber and steel belts are 44,000 and 9,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 52,000 and 7,000 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
Ibs.
Ibs.
Truck tires
Total pounds available
Ibs.
Ibs.
Total units purchased
Ibs.
Ibs.
Unit price
Total direct materials to be purchased
$
Transcribed Image Text: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 Ibs. Ibs. Truck tires Total pounds available Ibs. Ibs. Total units purchased Ibs. Ibs. Unit price Total direct materials to be purchased $
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