Direct Materials Purchases Budget Anticipated sales for Sure Grip Tire Company were 71,000 passenger car...
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Direct Materials Purchases Budget Anticipated sales for Sure Grip Tire Company were 71,000 passenger car tires and 21,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires according to the following table: Passenger Car Truck Rubber Steel belts bs. per unit15 lbs, per unit The purchase prices of rubber and steel are $3.4 and $4.5 per pound, respectively. The desired ending inventories of rubber and steel belts are 67,000 and 14,000 pounds 29 Ibs. per unit 68 lbs. per unit respectively. The estimated beginning inventories for rubber and steel belts are 78,000 and 11,000 pounds, respectively. Prepare a direct materials purchases budget for Sure Grip Tire Company for the year ended December 31, 2016. When required, enter unit prices to the nearest cent. Sure Grip Tire Company Direct Materials Purchases Budget Rubber Steel Belts Total Pounds required for production Passenger tres Truck tires Plus desired inventory, December 31, 2016 Total Less estimated inventory, January 1, 2016 Total units purchased Unit price Total direct materials to be purchased
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