Direct Materials Purchases Budget

Anticipated sales for Solid Grip Company were 38,000 passenger car tires and 24,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows:

	Passenger Car	Truck
Rubber	36 lb. per unit	80 lb. per unit
Steel belts	6 lb. per unit	10 lb. per unit

The purchase prices of rubber and steel are $1.40 and $0.90 per pound, respectively. The desired ending inventories of rubber and steel belts are 35,000 and 12,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 40,000 and 10,000 pounds, respectively.

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

Solid Grip Company Direct Materials Purchases Budget For the Year Ending December 31, 20Y8

	Rubber	Steel Belts	Total
Pounds required for production:
Passenger tires	fill in the blank 1lb.	fill in the blank 2lb.
Truck tires	fill in the blank 3	fill in the blank 4
Less desired inventory, December 31, 20Y8Plus desired inventory, December 1, 20Y8Plus desired inventory, December 31, 20Y8Plus estimated inventory, December 1, 20Y8Plus estimated inventory, December 31, 20Y8	- Select -	- Select -
Total pounds required	fill in the blank 8lb.	fill in the blank 9lb.
Less desired inventory, January 31, 20Y8Less estimated inventory, January 1, 20Y8Less estimated inventory, January 31, 20Y8Plus estimated inventory, January 1, 20Y8Plus estimated inventory, January 31, 20Y8	- Select -	- Select -
Total pounds to be purchased	fill in the blank 13lb.	fill in the blank 14lb.
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