Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Chapter 8, Problem 11E
To determine
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
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X $
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Chapter 8 Solutions
Managerial Accounting
Ch. 8 - Prob. 1DQCh. 8 - Briefly describe the type of human behavior...Ch. 8 - What behavioral problems are associated with...Ch. 8 - What behavioral problems are associated with...Ch. 8 - Under what circumstances would a static budget be...Ch. 8 - Prob. 6DQCh. 8 - Prob. 7DQCh. 8 - Why should the timing of direct materials...Ch. 8 - Prob. 9DQCh. 8 - Give an example of how the capital expenditures...
Ch. 8 - At the beginning of the period, the Fabricating...Ch. 8 - Pasadena Candle Inc. projected sales of 800,000...Ch. 8 - Pasadena Candle Inc. budgeted production of...Ch. 8 - Pasadena Candle Inc. budgeted production of...Ch. 8 - Prob. 5BECh. 8 - Cash budget Pasadena Candle Inc. pays 40% of its...Ch. 8 - At the beginning of the school year, Craig Kovar...Ch. 8 - Digital Solutions Inc. uses flexible budgets that...Ch. 8 - Static budget versus flexible budget The...Ch. 8 - Prob. 4ECh. 8 - Production budget Healthy Measures Inc. produces a...Ch. 8 - Sales and production budgets Sonic Inc....Ch. 8 - Professional foes earned budget for a service...Ch. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Direct labor cost budget Ace Racket Company...Ch. 8 - Prob. 13ECh. 8 - Factory overhead cost budget Sweet Tooth Candy...Ch. 8 - Cost of goods sold budget Delaware Chemical...Ch. 8 - Prob. 16ECh. 8 - Prob. 17ECh. 8 - Prob. 18ECh. 8 - Schedule of cash payments for service company...Ch. 8 - Prob. 20ECh. 8 - Capital expenditures budget On January 1, 20Y6,...Ch. 8 - Prob. 1PACh. 8 - Sales, production, direct materials purchases, and...Ch. 8 - Budgeted income statement and supporting budgets...Ch. 8 - Budgeted income statement and supporting budgets...Ch. 8 - Cash budget The controller of Bridgeport...Ch. 8 - Budgeted income statement and balance sheet As a...Ch. 8 - Prob. 1PBCh. 8 - Sales, production, direct materials purchases, and...Ch. 8 - Budgeted income statement and supporting budgets...Ch. 8 - Prob. 4PBCh. 8 - Cash budget The controller of Mercury Shoes Inc....Ch. 8 - Budgeted income statement and balance sheet As a...Ch. 8 - Analyze Johnson Stores staffing budget for...Ch. 8 - Prob. 2MADCh. 8 - Prob. 3MADCh. 8 - Prob. 4MADCh. 8 - Ethics in Action The director of marketing for...Ch. 8 - Prob. 3TIFCh. 8 - Evaluating the budgeting system in a service...Ch. 8 - Static budget for a service company A hank manager...Ch. 8 - Objectives of the master budget Dominos Pizza LLC...Ch. 8 - When compared to static budgets, flexible budgets:...Ch. 8 - Prob. 2CMACh. 8 - Ming Company has budgeted sales at 6,300 units for...Ch. 8 - Krouse Company produces two products, forged...
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