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Direct materials purchases budget Anticipated sales for Safety Grip Company were 67,000 passenger car tires and 20,000 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 5 lbs. per unit 13 lbs. per unit The purchase prices of rubber and steel are $3.70 and $4.80 per pound, respectively. The desired ending inventories of rubber and steel belts are 63,000 and 13,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 74,000 and 11,000 pounds, respectively. Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 2019. Safety Grip Company Direct Materials Purchases Budget

Direct materials purchases budget Anticipated sales for Safety Grip Company were 67,000 passenger car tires and 20,000 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 5 lbs. per unit 13 lbs. per unit The purchase prices of rubber and steel are $3.70 and $4.80 per pound, respectively. The desired ending inventories of rubber and steel belts are 63,000 and 13,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 74,000 and 11,000 pounds, respectively. Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 2019. Safety Grip Company Direct Materials Purchases Budget

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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< Direct materials purchases budget Anticipated sales for Safety Grip Company were 67,000 passenger car tires and 20,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: Passenger Car 34 lbs. per unit 79 lbs. per unit 13 lbs. per unit 5 lbs. per unit The purchase prices of rubber and steel are $3.70 and $4.80 per pound, respectively. The desired ending inventories of rubber and steel belts are 63,000 and 13,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 74,000 and 11,000 pounds, respectively. Rubber Steel belts Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 2019. Safety Grip Company Direct Materials Purchases Budget For the Year Ending December 31, 20Y9 Rubber Line Item Description Pounds required for production: Passenger tires Truck Truck tires Desired inventory, December 31, 20Y9 Total pounds available Estimated inventory, January 1, 20Y9 Total units purchased Unit price Total direct materials to be purchased x $ 2,278,000 1,580,000 ✓ lbs. lbs. lbs. Steel Belts x $ 335,000 lbs. 260,000 ✓ lbs. lbs. Total 0
Transcribed Image Text:< Direct materials purchases budget Anticipated sales for Safety Grip Company were 67,000 passenger car tires and 20,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: Passenger Car 34 lbs. per unit 79 lbs. per unit 13 lbs. per unit 5 lbs. per unit The purchase prices of rubber and steel are $3.70 and $4.80 per pound, respectively. The desired ending inventories of rubber and steel belts are 63,000 and 13,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 74,000 and 11,000 pounds, respectively. Rubber Steel belts Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 2019. Safety Grip Company Direct Materials Purchases Budget For the Year Ending December 31, 20Y9 Rubber Line Item Description Pounds required for production: Passenger tires Truck Truck tires Desired inventory, December 31, 20Y9 Total pounds available Estimated inventory, January 1, 20Y9 Total units purchased Unit price Total direct materials to be purchased x $ 2,278,000 1,580,000 ✓ lbs. lbs. lbs. Steel Belts x $ 335,000 lbs. 260,000 ✓ lbs. lbs. Total 0
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