The purchase prices of rubber and steel are $1.20 and $0.80 per pound, respectiv
ID: 2502851 • Letter: T
Question
The purchase prices of rubber and steel are $1.20 and $0.80 per pound, respectively. The desired ending inventories of rubber and steel belts are 40,000 and 10,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 46,000 and 8,000 pounds, respectively.
Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 2014. When required, enter unit prices to the nearest cent.
HidePrepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 2014. When required, enter unit prices to the nearest cent.
Safety Grip Company Direct Materials Purchases Budget For the Year Ending December 31, 2014 Rubber Steel Belts Total Pounds required for production: Passenger tires lbs. lbs. Truck tires Total lbs. lbs. Total units purchased lbs. lbs. Unit price x $ x $ Total direct materials to be purchased $ $ $
Explanation / Answer
Safety Grip Company Direct Materials Purchases Budget For the Year Ending December 31, 2014 Rubber Steel Belts Total Pounds required for production: Passenger tires 1470000 210000 Truck tires 1482000 152000 Plus desired ending inventory 40000 10000 Total 2992000 372000 Less estimated beginning inventory 46000 8000 Total units purchased 2946000 364000 Unit price $ 1.20 $ 0.80 Total direct materials to be purchased $ 3,535,200 $ 291,200 $3,826,400
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