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Anticipated sales for Safety Grip Company were 63,000 passenger car tires and 19,000 truck tires. Rubber and steel belts are used in producing passenger car
Anticipated sales for Safety Grip Company were 63,000 passenger car tires and 19,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: Passenger Car Truck Rubber 25 lbs. per unit 58 lbs. per unit Steel belts 6 lbs. per unit 15 lbs. per unit The purchase prices of rubber and steel are $3.10 and $4.10 per pound, respectively. The desired ending inventories of rubber and steel belts are 59,000 and 13,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 69,000 and 10,000 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 Rubber Steel Belts Total Pounds required for production: Passenger tires lbs. lbs. Truck tires Desired inventory, December 31, 2019 Total pounds available Estimated inventory, January 1, 2019 Total units purchased lbs. lbs. Unit price Total direct materials to be purchased
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