Direct materials purchases budget
Anticipated sales for Safety Grip Company were passenger car tires and truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows:
tablePassenger Car,TruckRubber lbs per unit, lbs per unitSteel belts, lbs per unit, lbs per unit
The purchase prices of rubber and steel are $ and $ per pound, respectively. The desired ending inventories of rubber and steel belts are and pounds, respectively. The estimated beginning inventories for rubber and steel belts are and pounds, respectively.
Prepare a direct materials purchases budget for Safety Grip Company for the year ended December Y
Safety Grip Company
Direct Materials Purchases Budget
For the Year Ending December Y
Line Item Description
Pounds required for production:
Passenger tires
Truck tires
Rubber
Steel Belts
lbs Ibs.
Ibs. Ibs.
Total units purchased
Ibs.
Ibs.
