Question

Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 44,000 passenger car tires and 13,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: Rubber Passenger Car 27 lbs. per unit 5 lbs. per unit Truck 63 lbs. per unit 13 lbs. per unit Steel belts The purchase prices of rubber and steel are $3.60 and $4.70 per pound, respectively. The desired ending inventories of rubber and steel belts are 41,000 and 9,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 48,000 and 7,000 pounds, respectively. Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 2049. Safety Grip Company Direct Materials Purchases Budget For the Year Ending December 31, 2019 Rubber Steel Belts Pounds required for production: Passenger tires lbs. lbs. Truck tires Total Total pounds available lbs. Total units purchased Unit price Total direct materials to be purchased

Answer 1

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A. B C 1 Answer 2. Safety Grip Company Direct Material Purchases Budget 4 For the Year Ending December 31, 20Y9 5 Steel Belts Rubber Total 6 7 Pounds Required for Production: Passenger Tires 8 1188000 220000 (27 44000) (5*44000) 10 Truck tires 819000 169000 (63* 13000) 11 (13*13000) 12 Plus ending inventory 41000 9000 13 Total Pounds available 398000 2048000 14 Less beginning inventory 48000 7000 15 Total Units Purchased 2000000 391000 16 Unit Price 3.6 4.7 17 Total Direct Material to be Purchased 7200000 1837700 9037700 18 19 Note 20 The unbold amounts are not part of final answer and are just for calculation purposes only. 21 n