еBook Print Item Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 53,000 passenger car tires and 16,000 truck tires. Rubber and steel belts are used in producing passenger car and truck ires according to the following table: Passenger Car Truck Rubber 34 lbs. per unit 79 lbs. per unit Steel belts 4 Ibs. per unit 10 Ibs. per unit The purchase prices of rubber and steel are $3.5 and $4.6 per pound, respectively. The desired ending inventories of rubber and steel belts are 50,000 and 11,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 58,000 and 8,000 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 Ibs. Ibs. Truck tires Total pounds available Ibs. Ibs. Total units purchased Ibs. Ibs. Unit price Total direct materials to be purchased
еBook Print Item Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 53,000 passenger car tires and 16,000 truck tires. Rubber and steel belts are used in producing passenger car and truck ires according to the following table: Passenger Car Truck Rubber 34 lbs. per unit 79 lbs. per unit Steel belts 4 Ibs. per unit 10 Ibs. per unit The purchase prices of rubber and steel are $3.5 and $4.6 per pound, respectively. The desired ending inventories of rubber and steel belts are 50,000 and 11,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 58,000 and 8,000 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 Ibs. Ibs. Truck tires Total pounds available Ibs. Ibs. Total units purchased Ibs. Ibs. Unit price Total direct materials to be purchased
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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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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