The desired ending inventories of rubber

Question

Anticipated sales for Safety Grip Company were 42,000 passenger car tires and 19,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires according to the following table:

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.

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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.

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		$