Question
Anticipated sales for Sure Grip Tire Company were 33,000 passenger car tires and 10,000 truck tires. Rubber and steel belts are used in producing passenger
Anticipated sales for Sure Grip Tire Company were 33,000 passenger car tires and 10,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires according to the following table:
Passenger Car | Truck | |
Rubber | 32 lbs. per unit | 75 lbs. per unit |
Steel belts | 6 lbs. per unit | 15 lbs. per unit |
The purchase prices of rubber and steel are $3.4 and $4.5 per pound, respectively. The desired ending inventories of rubber and steel belts are 31,000 and 7,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 36,000 and 5,000 pounds, respectively.
Prepare a direct materials purchases budget for Sure Grip Tire Company for the year ended December 31, 2016. When required, enter unit prices to the nearest cent.
Sure Grip Tire Company Direct Materials Purchases Budget For the Year Ending December 31, 2016 Steel BeltsTotal Pounds required for production: Passenger tires Truck tires Total li bs bs. li Total units purchased Unit price Total direct materials to be purchased$ bs bsStep by Step Solution
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