22.7

Direct Materials Purchases Budget Anticipated sales for Solid Grip Company were 38,000 passenger car tires and 24,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: Passenger Car Truck Rubber 36 lb, per unit 80 lb, per unit Steel belts 6 d. per unit 10 lb, per unit The purchase prices of rubber and steel are $1.40 and $0.90 per pound, respectively. The desired ending inventories of rubber and steel belts are 35,000 and 12,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 40,000 and 10,000 pounds, respectively Prepare a direct materials purchases budget for Solid Grip Company for the year ended December 31, 20Y. When required, enter unit prices to the nearest cent. Solid Grip Company Direct Materials Purchases Budget For the Year Ending December 31, 20Y8 Rubber Steel Belts Total Pounds required for production Passenger tires 1.361.000 lb 1.320,000 Xib. Truck tires 220.000 X 240.000 Plus desired inventory, December 31, 2018 35.000 12.000 Total pounds required 143,000 XD 2.173,000 XD Less estimated Inventory Oanuary 120YB Total pounds to be purchased 1.391.000 Xb 2.162,000 X ib. Unit price 6.90 100 x Total direct materials to be purchased -40.000 -0.000 x 14 1.327.00 X 1.950 X