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Anticipated sales for Safety Grip Company were 41,000 passenger car tires and 12,000 truck tires. Rubber and steel belts are used in producing passenger car
Anticipated sales for Safety Grip Company were 41,000 passenger car tires and 12,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires according to the following table! Passenger Car Truck Rubber 35 lbs. per unit 82 lbs. per unit Steel belts 5 lbs per unit 13 lbs. per unit The purchase prices of rubber and steel are $3.7 and $4.8 per pound, respectively. The desired ending inventories of rubber and steel belts are 39,000 and 8,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 45,000 and 6,000 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, 2049 Rubber Steel Belts Pounds required for production: Passenger tires Ibs jos Truck tires Total Total pounds available Ibs lbs. Total units purchased Ibs. lus Unit price Total direct materials to be purchased
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