Direct Materials Purchases Budget
Anticipated sales for Safety Grip Company were 35,000 passengercar tires and 11,000 truck tires. Rubber and steel belts are usedin producing passenger car and truck tires according to thefollowing table:
| Passenger Car | Truck |
| Rubber | 25 lbs. per unit | 58 lbs. per unit |
| Steel belts | 7 lbs. per unit | 18 lbs. per unit |
The purchase prices of rubber and steel are $3.2 and $4.2 perpound, respectively. The desired ending inventories of rubber andsteel belts are 33,000 and 7,000 pounds, respectively. Theestimated beginning inventories for rubber and steel belts are39,000 and 6,000 pounds, respectively.
Prepare a direct materials purchases budget for Safety GripCompany 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 | lbs. | lbs. | |
| Truck tires | | | |
| | | |
| Total pounds available | lbs. | lbs. | |
| | | |
| Total units purchased | lbs. | lbs. | |
| Unit price | x $ | x $ | |
| Total direct materials to be purchased | $ | $ | $ |
