Direct Materials Purchases Budget

Anticipated sales for Sure Grip Tire Company were 38,000 passenger car tires and 11,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires according to the following table:

	Passenger Car	Truck
Rubber	28 lbs. per unit	65 lbs. per unit
Steel belts	7 lbs. per unit	18 lbs. per unit

The purchase prices of rubber and steel are $2.9 and $3.8 per pound, respectively. The desired ending inventories of rubber and steel belts are 36,000 and 7,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 42,000 and 6,000 pounds, respectively.

Prepare a direct materials purchases budget for Sure Grip Tire Company for the year ended December 31, 2016. When required, enter unit prices to the nearest cent.

Sure Grip Tire Company Direct Materials Purchases Budget For the Year Ending December 31, 2016 Rubber Steel Belts Total Pounds required for production: Passenger tires lbs. lbs. Truck tires Plus desired inventory, December 31, 2016 Total lbs. Ibs. Less estimated inventory, January 1, 2016 Total units purchased lbs. Ibs. Unit price X $ x $ Total direct materials to be purchased $ $