Direct Materials Purchases Budget

Anticipated sales for Safety Grip Company were 69,000 passenger car tires and 21,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows:

	Passenger Car	Truck
Rubber	29 lb. per unit	68 lb. per unit
Steel belts	7 lb. per unit	18 lb. per unit

The purchase prices of rubber and steel are $3.6 and $4.7 per pound, respectively. The desired ending inventories of rubber and steel belts are 65,000 and 14,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 76,000 and 11,000 pounds, respectively.

Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 20Y8. When required, enter unit prices to the nearest cent.

Safety Grip Company
Direct Materials Purchases Budget
For the Year Ending December 31, 20Y8
	Rubber	Steel Belts	Total
Pounds required for production:
Passenger tires	lb.	lb.
Truck tires
Total pounds required	lb.	lb.
Total units purchased	lb.	lb.
Unit price	x $	x $
Total direct materials to be purchased	$	$	$