Anticipated sales for Safety Grip Company were 32,000 passenger car tires and 10,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows:   Passenger Car Truck Rubber 34 lbs. per unit 79 lbs. per unit Steel belts 6 lbs. per unit 15 lbs. per unit The purchase prices of rubber and steel are $3.40 and $4.50 per pound, respectively. The desired ending inventories of rubber and steel belts are 30,000 and 7,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 35,000 and 5,000 pounds, respectively. Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 20Y9

Managerial Accounting: The Cornerstone of Business Decision-Making
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Chapter8: Tactical Decision-making And Relevant Analysis
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Anticipated sales for Safety Grip Company were 32,000 passenger car tires and 10,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows:

  Passenger Car Truck
Rubber 34 lbs. per unit 79 lbs. per unit
Steel belts 6 lbs. per unit 15 lbs. per unit

The purchase prices of rubber and steel are $3.40 and $4.50 per pound, respectively. The desired ending inventories of rubber and steel belts are 30,000 and 7,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 35,000 and 5,000 pounds, respectively.

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

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