Question

Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 42,000 passenger car tires and 13,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: Passenger Car Truck Rubber 35 lb. per unit 82 lb. per unit Steel belts 3 lb. per unit 8 lb. per unit The purchase prices of rubber and stepl are $3.6 and $4.7 per pound, respectively. The desired ending inventories of rubber and steel belts are 39,000 and 9,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 46,000 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, 20YS Steel Belts Rubber Total Pounds required for production: Passenger tires Truck tires lb. Total pounds required Total units purchased Next Previous Check My Work 2 more Check My Work uses remaining Email Instructor Submit Assignment for Grading Save and Exit

Answer 1

Direct material purchases budget

	Rubber	Steel belts	Total
Pounds required for production
Passenger tires	1470000	126000
Truck tires	1066000	104000
Desired ending inventory	39000	9000
Total pounds required	2575000	239000
Less: Beginning inventory	-46000	-7000
Total Units purchased	2529000	232000
Unit price	3.6	4.7
Total direct materials to be purchased	9104400	1090400	10194800