Anticipated sales for Safety Grip Company were 60,000 passenger car tires and 18,000 truck tires. Rubber and
Fantastic news! We've Found the answer you've been seeking!
Question:
Anticipated sales for Safety Grip Company were 60,000 passenger car tires and 18,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires according to the following table:
Passenger Car | Truck | |
Rubber | 34 lbs. per unit | 79 lbs. per unit |
Steel belts | 3 lbs. per unit | 8 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 56,000 and 12,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 66,000 and 10,000 pounds, respectively.
Required
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 | lbs. | lbs. | |
Truck tires | |||
Total pounds available | lbs. | lbs. | |
Total units purchased | lbs. | lbs. | |
Unit price | x $ | x $ | |
Total direct materials to be purchased | $ | $ | $ |
Related Book For
Financial and Managerial Accounting
ISBN: 978-1285078571
12th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
Posted Date: