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Chapter 22, Problem 22.11EX
To determine

Budgeting is a process to prepare the financial statement by the manager to estimate the organization’s future actions. It is also helpful to satisfy the everyday activities.

Production Budget shows the quantities of units that a company must produce to meet the budgeted sales and inventory.

To Prepare: The direct materials purchases budget for Company S.

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Direct materials purchases budget Anticipated sales for safety Grip were 42,000 passenger car tires and 19,000 truck tires.Rubber and steel belts are used in producing passengers car and truck tires as follows: The purchase price of rubber and steel are $1.20 and $0.80 per pound,respectively.The desired ending inventories of rubber and steel belts are 40,000 and 10,000 pounds,respectively.The estimated begining inventories for rubber and steel belts are 46,000 and 8,000 pounds,respectively. Prepare a direct materials purchases budget for safety Grip Company for the year ended December 31,2018.
Direct materials purchases budget Anticipated sales for Safety Grip Company were 62,000 passenger car tires and 19,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: Passenger Car 25 lbs. per unit 58 lbs. per unit 6 lbs. per unit 15 lbs. per unit 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 58,000 and 13, pounds, respectively. The estimated beginning inventories for rubber and steel belts are 68,000 and 10,000 pounds, respectively. Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 20Y9. Rubber Steel belts Truck
Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 73,000 passenger car tires and 22,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: Rubber Steel belts Passenger Car 34 lbs. per unit 79 lbs. per unit 6 lbs. per unit 15 lbs. per unit 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 69,000 and 15,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 80,000 and 12,000 pounds, respectively. Truck 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 Steel Belts Pounds required for production: Passenger tires Truck tires Total pounds available Total units purchased Unit price Total direct materials to be purchased X $ Rubber lbs.…

Chapter 22 Solutions

Bundle: Accounting, Chapters 1-13, 26th + Working Papers, Chapters 1-17 For Warren/reeve/duchac's Accounting, 26th And Financial Accounting, 14th + ... For Warren/reeve/duchac's Accounting, 26th

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