Direct Materials Purchases Budget

Anticipated sales for Safety Grip Company were 62,000 passenger car tires and 19,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires according to the following table:

	Passenger Car	Truck
Rubber	30 lbs. per unit	70 lbs. per unit
Steel belts	4 lbs. per unit	10 lbs. per unit

The purchase prices of rubber and steel are $2.8 and $3.7 per pound, respectively. The desired ending inventories of rubber and steel belts are 58,000 and 13,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 68,000 and 10,000 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
	Rubber	Steel Belts	Total
Pounds required for production:
Passenger tires	fill in the blank 1lbs.	fill in the blank 2lbs.
Truck tires	fill in the blank 3	fill in the blank 4
	fill in the blank 6	fill in the blank 7
Total pounds available	fill in the blank 8lbs.	fill in the blank 9lbs.
	fill in the blank 11	fill in the blank 12
Total units purchased	fill in the blank 13lbs.	fill in the blank 14lbs.
Unit price	x $fill in the blank 15	x $fill in the blank 16
Total direct materials to be purchased	$fill in the blank 17	$fill in the blank 18	$fill in the blank 19