Anticipated sales for Safety Grip Company were 68,000 passenger car tires and 20,000 truck tires. Rubber...

Anticipated sales for Safety Grip Company were 68,000 passenger car tires and 20,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows:

	Passenger Car	Truck
Rubber	31 lbs. per unit	72 lbs. per unit
Steel belts	7 lbs. per unit	18 lbs. per unit

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 64,000 and 13,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 75,000 and 11,000 pounds, respectively.

Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 20Y9.

Solutions

Expert Solution

Since details about production are not given, it is assumed sales units and budgeted production are same, if there is some difference, kindly comment with that information.

Direct Material Purchase Budget
	Rubber	Steel Belts	Total
Physical units Budget
To be used in production
Passenger Car	2108000	476000
Truck	1440000	360000
Add Target Ending Inventory	64000	13000
Total Requirements	3612000	849000
Deduct Beginning Inventory	75000	11000
Purchases to be made (Pounds)	3537000	838000
Cost per unit	$ 3.30	$ 4.30
Direct Materials to be Purchased	$ 11,672,100	$ 3,603,400	$ 15,275,500

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 74,000 passenger car tires and...

Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 74,000 passenger car tires and 22,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: Passenger Car Truck Rubber 28 lb. per unit 65 lb. per unit Steel belts 3 lb. per unit 8 lb. per unit The purchase prices of rubber and steel are $2.9 and $3.8 per pound, respectively. The desired ending inventories of rubber and steel belts are...

Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 44,000 passenger car tires and...

Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 44,000 passenger car tires and 13,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: Passenger Car Truck Rubber 26 lbs. per unit 61 lbs. per unit Steel belts 7 lbs. per unit 18 lbs. per unit The purchase prices of rubber and steel are $3.40 and $4.50 per pound, respectively. The desired ending inventories of rubber and steel belts are...

Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 57,000 passenger car tires and...

Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 57,000 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 Rubber 34 lbs. per unit 79 lbs. per unit Steel belts 3 lbs. per unit 8 lbs. 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...

Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 50,000 passenger car tires and...

Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 50,000 passenger car tires and 15,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: Passenger Car Truck Rubber 26 lbs. per unit 61 lbs. per unit Steel belts 3 lbs. per unit 8 lbs. per unit The purchase prices of rubber and steel are $3.2 and $4.2 per pound, respectively. The desired ending inventories of rubber and steel belts are...

Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 35,000 passenger car tires and...

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 according to the following table: Passenger Car Truck Rubber 25 lbs. per unit 58 lbs. per unit Steel belts 7 lbs. per unit 18 lbs. per unit The purchase prices of rubber and steel are $3.2 and $4.2 per pound, respectively. The desired ending inventories of rubber and...

Direct Materials Purchases Budget Anticipated sales for Solid Grip Company were 38,000 passenger car tires and...

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 lb. 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...

A tow truck company suspects that the lifespan of certain tires is less than the 28,000 miles they were offered.

A tow truck company suspects that the lifespan of certain tires is less than the 28,000 miles they were offered. To verify if its suspicion is true, the company purchases 40 tires, places them in its trucks and measures the life of each one. The results are presented in the rate below. Presumed known standard deviation = 1300 miles 26579 27965 26868 25070 26488 25834 27355 28039 32237 25523 28331 29103 24439 32850 28942 27474 27618 25645 27497 28183...

For design, the daily car, pickup truck, and light van traffic is 20,000; and the daily...

For design, the daily car, pickup truck, and light van traffic is 20,000; and the daily truck traffic consists of 200 passes of single-unit trucks with single and tandem axles, and 410 passes of tractor semi-trailer trucks with single, tandem, and triple axles. The axle weights are :cars, pickups, light vans = two 2000-lb single axles;single-unit trucks = 10,000-lb steering, single axle= 22,000-lb drive, tandem axle and: tractor semi-trailer trucks = 12,000-lb steering, single axle,= 18,000-lb drive, tandem axle,= 50,000-lb...

A company produces tires for passenger cars. The quality control manager tells the company president that...

A company produces tires for passenger cars. The quality control manager tells the company president that the proportion of defects is less than 1%. A sample of 36 tires reveals a defect rate of 1.8%. Is there evidence that the quality control manager is lying? Use a .05 level of significance

Aque Company Depreciation and Depletion Schedule Delivery Truck Inputs: Original cost $ 68,000

Aque Company Depreciation and Depletion Schedule Delivery Truck Inputs: Original cost $ 68,000 Salvage value $ 4,400 Depreciable cost $ 63,600 Estimated useful life 4 years Depreciation rate 50% Date of acquisition 1-Mar-17 First-year fraction 1/4 Last year fraction 1 Depreciation method Declining balance x2 Calculations: For Year Ending December 31 End of Year Book Value Annual at Beginning Depreciation Depreciation Accumulated Book Year of Year Rate Expense Depreciation Value 2017 2018 2019 2020 In Excel, I need to figure...

Subjects