Question

Direct Materials Purchases Budget

Anticipated sales for Safety Grip Company were 46,000 passenger car tires and 14,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows:

	Passenger Car	Truck
Rubber	32 lb. per unit	75 lb. per unit
Steel belts	6 lb. per unit	15 lb. per unit

The purchase prices of rubber and steel are $3.7 and $4.8 per pound, respectively. The desired ending inventories of rubber and steel belts are 43,000 and 9,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 51,000 and 7,000 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	$	$	$

Answer 1

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	1472000 lb.	276000 lb.
Truck tires	1050000	210000
Desired ending inventory	43000	9000
Total pounds required	2565000 lb.	495000 lb.
Less: Beginning inventory	-51000	-7000
Total units purchased	2514000 lb.	488000 lb.
Unit price	x $3.7	x $4.8
Total direct materials to be purchased	$9301800	$2342400	$11644200