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Anticipated sales for Safety Grip Company were 66,000 passenger car tires and 20,000 truck tires. Rubber and steel belts are used in producing passenger
Anticipated sales for Safety Grip Company were 66,000 passenger car tires and 20,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: Passenger Car Truck Rubber 26 lbs. per unit 61 lbs. per unit Steel belts 3 lbs. per unit 8 lbs. per unit The purchase prices of rubber and steel are $3.00 and $3.90 per pound, respectively. The desired ending inventories of rubber and steel belts are 62,000 and 13,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 73,000 and 11,000 pounds, respectively. Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 20Y9. Safety Grip Company Direct Materials Purchases Budget For the Year Ending December 31, 20Y9 Line Item Description Pounds required for production: Passenger tires Truck tires Total pounds available Rubber Steel Belts 1,782,000 X lbs. 396,000 X lbs. 1,260,000 X 300,000 X lbs. lbs. Total units purchased lbs. lbs. Unit price x $ X $ Total direct materials to be purchased $ Total
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