Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 65,000 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 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 $3.40 and $4.50 per pound, respectively. The desired ending inventories of rubber and steel belts are 61,000 and 13,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 72,000 and 11,000 pounds, respectively. Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 2019. Safety Grip Company Direct Materials Purchases Budget For the Year Ending December 31, 2019 Rubber Steel Belts Total Pounds required for production: Passenger tires 208,000 X lbs. 390,000 lbs. Truck tires 1,500,000 300,000 Desired inventory, December 31, 2019 3,580,000 X 690,000 X 61,000 X lbs. 1.3,000 X lbs. Total pounds available Desired inventory, January 1, 2049 X 72.000 11,000 Total units purchased 3,569,000 lbs 692,000 lbs. Unit price X$ 4.5 Total direct materials to be purchased $ 12,134,600 $ 3,114,000 15,248,600