Direct materials purchases budget

Anticipated sales for Safety Grip Company were $42,000$ passenger car tires and $19,000$ truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows:

$\backslash$table$[[,$Passenger Car,Truck$],[$Rubber$,35lbs.$ per unit,$78lbs.$ per unit$],[$Steel belts,$5lbs.$ per unit,$8lbs.$ per unit$]]$

The purchase prices of rubber and steel are $$1\mathrm{.}20$ and $$0\mathrm{.}80$ per pound, respectively. The desired ending inventories of rubber and steel belts are $40,000$ and $10,000$ pounds, respectively. The estimated beginning inventories for rubber and steel belts are $46,000$ and $8,000$ 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 $31,20$ Y$9$

Line Item Description

Pounds required for production:

Passenger tires

Truck tires

Desired inventory, December $31,20$Y$9$

Total pounds available

Estimated inventory, January $1,20$Y$9$

Total units purchased

Unit price

Total direct materials to be purchased

Rubber

$$

$$

$q,$

$$ lbs$.$

Steel Belts

$x$ Ibs.

$$

$q,$

All work saved.

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