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Direct Materials Purchases Budget
Anticipated sales for Safety Grip Company were 35,000 passenger
car tires and 11,000 truck tires. Rubber and steel belts are used
in producing passenger car and truck tires as follows:
The purchase prices of rubber and steel are $3.30 and $4.30 per
pound, respectively. The desired ending inventories of rubber and
steel belts are 33,000 and 7,000 pounds, respectively. The
estimated beginning inventories for rubber and steel belts are
39,000 and 6,000 pounds, respectively.
Prepare a direct materials purchases budget for Safety Grip
Company for the year ended December 31, 20Y9.
Desired inventory, December 1, 20Y9Desired inventory, December
31, 20Y9Direct labor hourEstimated inventory, December 1,
20Y9Estimated inventory, December 31, 20Y9Desired inventory,
December 31, 20Y9
DepreciationDesired inventory, January 1, 20Y9Desired inventory,
January 31, 20Y9Estimated inventory, January 1, 20Y9Estimated
inventory, January 31, 20Y9Estimated inventory, January 1, 20Y9