Anticipated sales for Goodstone Tire Company were 38,000 passenger car tires and 14,000 truck tires. There were no anticipated beginning finished goods inventories for either product. The planned ending finished goods inventories were 2,750 units for each product.
Rubber and steel belts are used in producing passenger car and truck tires according to the following table:

The purchase prices of rubber and steel are $2.90 and $3.50 per pound, respectively.
The desired ending inventories of rubber and steel belts are 45,000 and 9,000 pounds, respectively.
The estimated beginning inventories for rubber and steel belts are 72,000 and 6,000 pounds, respectively.
The following direct materials purchases budget was prepared for Goodstone Tire Company:

Correct the direct materials purchases budget for Goodstone TireCompany.

Transcribed Image Text:

Passenger Car 30 lbs. per unit 4 lbs. per unit Truck Rubber Steel belts 65 lbs. per unit 9 lbs. per unit Goodstone Tire Company Direct Materials Purchases Budget For the Year Ending December 31, 2008 Rubber Steel Belts Total Units required for production: .. 1,140,0001 bs. 52,000 bs. Truck tires .._..^.. 910,0002 126,000 Total. 2,050,000 Ibs. 278,000 bs ....x$2.90 $5,945,000 x $3.50 $973,000 Total direct materials purchases $6,918,000 1. 38,000 tires x 30 lbs. ,40,000 lbs. 2. 14,000 tres x 65 lbs. 910,000 lbs. 3. 38,000 tires x 4 lbs. 152,000 lbs. 4. 14,000 tires x 9 Ibs. 126,000 lbs.