htt lexp cengage com/activityservice/run/html5/handlerjsplid-S1bb.. Direct Mater

Question

htt lexp cengage com/activityservice/run/html5/handlerjsplid-S1bb.. Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 39,000 passenger car tires and 12,000 steel beits are used in producing passenger car and truck tires according to the following table: truck tires. Rubber and Passenger Car Truck Rubber 26 lbs. per unit 61 ibs. per unit Steel belts 3 lbs. per unit 8 lbs. per unit The purchase prices of rubber and steel are $3 and $3.9 per pound, respectively. The desired ending inventories of rubber and steel belts are 37,000 and 8,000 pounds, respectively. The inventories for rubber and steel belts are 43,000 and 6,000 pounds, respectively. estimated beginning Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 20Y9. Safety Grip Company Direct Materials Purchases Budget Rubber Steel Belts Total Pounds required for production Passenger tires Truck tires bs. lbs. Total pounds available lbs. Total units purchased Unit price Total direct materials to be purchased

Explanation / Answer

Direct material purchase budget :

Rubber Steel Belts Total Pounds required for production Passenger tires 1014000 117000 Truck tires 732000 96000 Desired ending inventory 37000 8000 Total pounds available 1783000 221000 Less: Beginning inventory (43000) (6000) Total units purchased 1740000 215000 Unit price 3 3.9 Total direct materials to be purchased 5220000 838500

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