Chapter 07 Homework (Application) Rubber Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 56,000 passenger car tires and 17,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires according to the following table: Passenger Car Truck 32 lbs. per unit 75 tbs. per unit Steel belts 4 lbs. per unit 10 tbs. per unit The purchase prices of rubber and steel are $3.6 and $4.7 per pound, respectively. The desired ending inventories of rubber and steel belts are 53,000 and 11,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 62,000 and 9,000 pounds, respectively. Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 2019 Safety Grip Company Direct Materials Purchases Budget For the Year Ending December 31, 2049 Rubber Stel Belts Pounds required for production: Passenger tires Truck tires Desired inventory, December 31, 2015 Total pounds available Estimated Inventory, January 1, 2019 Total units purchased Unit price Total direct materials to be purchased . 3