Question
Anticipated sales for Safety Grip Company were 32,000 passenger car tires and 10,000 truck tires. Rubber and steel belts are used in producing passenger
Anticipated sales for Safety Grip Company were 32,000 passenger car tires and 10,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: Rubber Passenger Car Truck 33 lbs. per unit 77 lbs. per unit Steel belts .7 lbs. per unit 18 lbs. per unit The purchase prices of rubber and steel are $3.70 and $4.80 per pound, respectively. The desired ending inventories of rubber and steel belts are 30,000 and 7,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 35,000 and 5,000 pounds, respectively, Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 2019. Safety Grip Company Direct Materials Purchases Budget For the Year Ending December 31, 2019 Pounds required for production: Passenger tires Truck tires Total pounds available Rubber lbs. Steel Belts Total IDS lbs lbs. Total units purchased i lbs. lbs. Unit price
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