Question

Direct Materials Purchases Budget

Anticipated sales for Safety Grip Company were 56,000 passenger car tires and 17,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows:

	Passenger Car	Truck
Rubber	31 lbs. per unit	72 lbs. per unit
Steel belts	5 lbs. per unit	13 lbs. per unit

The purchase prices of rubber and steel are $3.20 and $4.20 per pound, respectively. The desired ending inventories of rubber and steel belts are 53,000 and 11,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 62,000 and 9,000 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
Truck tires
Total pounds available
Total units purchased
Unit price
Total direct materials to be purchased

Answer 1