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Anticipated sales for Safety Grip Company were 61,000 passenger car tires and 18,000 truck tires. Rubber and steel belts are used in producing passenger car
Anticipated sales for Safety Grip Company were 61,000 passenger car tires and 18,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: Passenger Car Truck Rubber 32 lbs. per unit 75 lbs. per unit Steel belts 4 lbs. per unit 10 lbs. per unit The purchase prices of rubber and steel are $2.90 and $3.80 per pound, respectively. The desired ending inventories of rubber and steel belts are 57,000 and 12,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 67,000 and 10,000 pounds, respectively. Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 2049. Safety Grip Company Direct Materials Purchases Budget For the Year Ending December 31, 2019 Rubber Steel Belts Total Pounds required for production: Passenger tires Ibs. lbs. Truck tires Total pounds available Ibs. lbs. Total units purchased lbs. lbs. Unit price x $ Total direct materials to be purchased $
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