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Anticipated sales for Safety Grip Company were 51,000 passenger car tires and 15,000 truck tires. Rubber and steel belts are used in producing passenger car
Anticipated sales for Safety Grip Company were 51,000 passenger car tires and 15,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: Truck Rubber Steel belts Passenger Car 30 lbs. per unit 3 lbs. per unit 70 lbs. per unit 8 lbs. per unit The purchase prices of rubber and steel are $3.50 and $4.60 per pound, respectively. The desired ending inventories of rubber and steel belts are 48,000 and 10,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 56,000 and 8,000 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 lbs. lbs. Total Truck tires Total pounds available L lbs. Total units purchased Unit price X $ Total direct materials to be purchased Activate Windows
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