Anticipated sales for Safety Grip Company were 73,000 passenger car tires and 22,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: Rubber Steel belts Passenger Car Truck 34 lbs. per unit 79 lbs. per unit 6 lbs. per unit 15 lbs. per unit The purchase prices of rubber and steel are $3.30 and $4.30 per pound, respectively. The desired ending inventories of rubber and steel belts are 69,000 and 15,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 80,000 and 12,000 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 Steel Belts Pounds required for production: Passenger tires Truck tires Total pounds available Total units purchased Unit price Total direct materials to be purchased x $ Rubber lbs. lbs. lbs. lbs. lbs. lbs. Total
Anticipated sales for Safety Grip Company were 73,000 passenger car tires and 22,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: Rubber Steel belts Passenger Car Truck 34 lbs. per unit 79 lbs. per unit 6 lbs. per unit 15 lbs. per unit The purchase prices of rubber and steel are $3.30 and $4.30 per pound, respectively. The desired ending inventories of rubber and steel belts are 69,000 and 15,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 80,000 and 12,000 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 Steel Belts Pounds required for production: Passenger tires Truck tires Total pounds available Total units purchased Unit price Total direct materials to be purchased x $ Rubber lbs. lbs. lbs. lbs. lbs. lbs. Total
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 11E
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