Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 48,000 passenger car tires and 14,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires according to the following table:   Passenger Car Truck Rubber 27 lbs. per unit 63 lbs. per unit Steel belts 7 lbs. per unit 18 lbs. per unit The purchase prices of rubber and steel are $3.3 and $4.3 per pound, respectively. The desired ending inventories of rubber and steel belts are 45,000 and 9,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 53,000 and 7,000 pounds, respectively. Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 20Y9. Safety Grip Company Direct Materials Purchases Budget For the Year Ending December 31, 20Y9   Rubber Steel Belts Total Pounds required for production:       Passenger tires lbs. lbs.   Truck tires               Total pounds available lbs. lbs.           Total units purchased lbs. lbs.   Unit price x $ x $   Total direct materials to be purchased $ $ $

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Direct Materials Purchases Budget

Anticipated sales for Safety Grip Company were 48,000 passenger car tires and 14,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires according to the following table:

  Passenger Car Truck
Rubber 27 lbs. per unit 63 lbs. per unit
Steel belts 7 lbs. per unit 18 lbs. per unit

The purchase prices of rubber and steel are $3.3 and $4.3 per pound, respectively. The desired ending inventories of rubber and steel belts are 45,000 and 9,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 53,000 and 7,000 pounds, respectively.

Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 20Y9.

Safety Grip Company
Direct Materials Purchases Budget
For the Year Ending December 31, 20Y9
  Rubber Steel Belts Total
Pounds required for production:      
Passenger tires lbs. lbs.  
Truck tires      
       
Total pounds available lbs. lbs.  
       
Total units purchased lbs. lbs.  
Unit price x $ x $  
Total direct materials to be purchased $ $ $
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