1. Anticipated sales for Safety Grip Company were 53,000 passenger car tires and 16,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows:

	Passenger Car	Truck
Rubber	33 lbs. per unit	77 lbs. per unit
Steel belts	3 lbs. per unit	8 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 50,000 and 11,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 58,000 and 8,000 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	fill in the blank 1 lbs.	fill in the blank 2 lbs.
Truck tires	fill in the blank 3	fill in the blank 4
Desired inventory, December 31, 20Y9	fill in the blank 6	fill in the blank 7
Total pounds available	fill in the blank 8 lbs.	fill in the blank 9 lbs.
Estimated inventory, January 1, 20Y9	fill in the blank 11	fill in the blank 12
Total units purchased	fill in the blank 13 lbs.	fill in the blank 14 lbs.
Unit price	x $fill in the blank 15	x $fill in the blank 16
Total direct materials to be purchased	$fill in the blank 17	$fill in the blank 18	$fill in the blank 19

2. Schedule of Cash Payments for a Service Company

EastGate Physical Therapy Inc. is planning its cash payments for operations for the first quarter (JanuaryMarch). The Accrued Expenses Payable balance on January 1 is $28,700. The budgeted expenses for the next three months are as follows:

	January		February		March
Salaries	$66,000		$80,400		$89,000
Utilities	5,500		6,000		7,200
Other operating expenses	50,800		55,400		61,000
Total	$122,300		$141,800		$157,200

Other operating expenses include $3,600 of monthly depreciation expense and $800 of monthly insurance expense that was prepaid for the year on May 1 of the previous year. Of the remaining expenses, 80% are paid in the month in which they are incurred, with the remainder paid in the following month. The Accrued Expenses Payable balance on January 1 relates to the expenses incurred in December.

Prepare a schedule of cash payments for operations for January, February, and March.

EastGate Physical Therapy Inc.
Schedule of Cash Payments for Operations
For the Three Months Ending March 31
	January	February	March
Payments of prior month's expense	$fill in the blank 2	$fill in the blank 3	$fill in the blank 4
Payments of current month's expense	fill in the blank 6	fill in the blank 7	fill in the blank 8
Total cash payments	$fill in the blank 9	$fill in the blank 10	$fill in the blank 11