Direct materials purchases budgetAnticipated sales for Safety Grip Company were 69,000 passenger car tires and 21,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows:RubberSteel beltsPassenger CarTruck35 lbs. per unit 82 lbs. per unit6 lbs. per unit 15 lbs. per unitThe purchase prices of rubber and steel are $3.70 and $4.80 per pound, respectively. The desired ending inventories of rubber and steel belts are 65,000 and 14,000 pounds, respectively. The estimated beginning inventories for rubber andsteel belts are 76,000 and 11,000 pounds, respectively.Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 20Y9.Safety Grip CompanyDirect Materials Purchases BudgetFor the Year Ending December 31, 20Y9<Line Item DescriptionPounds required for production:Passenger tiresTruck tiresRubberlbs.Steel BeltsTotallbs.Total pounds availablelbs.lbs.Total units purchasedUnit priceTotal direct materials to be purchasedlbs.lbs.x $

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Answered: Direct materials purchases budget…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 11E

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Lens & Shades sells sunglasses for $37 each and is estimating sales of 21,000 units in January and 19,000 in February. Each lens consist of 2.00 mm of plastic costing $2.50 per mm, 1.7 oz of dye costing $2.80 per ounce. and 0.50 hours direct labor at a labor rate of $18 per unit. Desired inventory levels are: Prepare a sales budget, production budget, direct materials budget for silicon and solution, and a direct labor budget.
Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and 18,000 in February. Each lens consists of 2 pounds of silicon costing $2.50 per pound, 3 oz of solution costing $3 per ounce, and 30 minutes of direct labor at a labor rate of $18 per hour. Desired inventory levels are: Â Prepare a sales budget, production budget. direct materials budget for silicon and solution, and a direct labor budget.
Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows: At the beginning of March, Salisburys management planned to produce 500,000 bottles. The actual number of bottles produced for March was 525,000 bottles. The actual costs for March of the current year were as follows: a. Prepare the March manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for Salisbury, assuming planned production. b. Prepare a budget performance report for manufacturing costs, showing the total cost variances for direct materials, direct labor, and factory overhead for March. c. Interpret the budget performance report.
Computing unit costs at different levels of production French Fragrances, Ltd. budgeted for 12,000 bottles of perfume Belle during May. The unit cost of Belle was $20, consisting of direct materials, $7; direct labor, $8; and factory overhead, $5 (fixed, $2; variable, $3). What would be the unit cost if 10,000 bottles were manufactured? (Hint: You must first determine the total fixed costs.) What would be the unit cost if 20,000 bottles were manufactured? Explain why a difference occurs in the unit costs.
Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 65,000 passenger car tires and 20,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires according to the following table: Passenger Car Truck Rubber 33 lbs. per unit 77 lbs. per unit Steel belts 7 lbs. per unit 18 lbs. per unit The purchase prices of rubber and steel are $3.7 and $4.8 per pound, respectively. The desired ending inventories of rubber and steel belts are 61,000 and 13,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 72,000 and 11,000 pounds, respectively. Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 20Y9. Safety Grip Company Direct Materials Purchases Budget For the Year Ending December 31, 20Y9 Rubber Steel Belts Total Pounds required for production: Passenger tires fill in the blank 1lbs. fill in the blank 2lbs.…
Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 48,000 passenger car tires and 14,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires according to the following table: Passenger Car Truck Rubber 27 lbs. per unit 63 lbs. per unit Steel belts 7 lbs. per unit 18 lbs. per unit The purchase prices of rubber and steel are $3.3 and $4.3 per pound, respectively. The desired ending inventories of rubber and steel belts are 45,000 and 9,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 53,000 and 7,000 pounds, respectively. Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 20Y9. Safety Grip Company Direct Materials Purchases Budget For the Year Ending December 31, 20Y9 Rubber Steel Belts Total Pounds required for production: Passenger tires lbs. lbs. Truck tires Total pounds…
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 35,000 and 12,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 40,000 and 10,000 pounds, respectively. Prepare a direct materials purchases budget for Solid Grip Company for the year ended December 31, 20Y8. When required, enter unit prices to the nearest cent. Solid Grip CompanyDirect Materials Purchases BudgetFor the Year Ending December 31, 20Y8 Rubber Steel Belts Total Pounds required for production: Passenger tires fill in the blank __lb. fill in the…
Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 73,000 passenger car tires and 22,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: Rubber Steel belts Passenger Car 34 lbs. per unit 79 lbs. per unit 6 lbs. per unit 15 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 69,000 and 15,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 80,000 and 12,000 pounds, respectively. Truck Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 20Y9. Safety Grip Company Direct Materials Purchases Budget For the Year Ending December 31, 20Y9 Steel Belts Pounds required for production: Passenger tires Truck tires Total pounds available Total units purchased Unit price Total direct materials to be purchased X $ Rubber lbs.…
Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 47,000 passenger car tires and 14,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: Passenger Car Truck Rubber 28 lbs. per unit 65 lbs. per unit Steel belts 4 lbs. per unit 10 lbs. per unit The purchase prices of rubber and steel are $3.60 and $4.70 per pound, respectively. The desired ending inventories of rubber and steel belts are 44,000 and 9,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 52,000 and 7,000 pounds, respectively.
Direct Materials Purchases Budget 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 as follows: Passenger Car Truck Rubber 35 lbs. per unit 78 lbs. per unit Steel belts 5 lbs. per unit 8 lbs. per unit 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, 20Y9. Safety Grip Company Direct Materials Purchases Budget For the Year Ending December 31, 20Y9 Rubber Steel Belts Total Pounds required for production: Passenger tires fill in the blank 1 lbs. fill in the blank 2 lbs. Truck tires fill in the…
Direct Materials Purchases Budget 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 as follows: Passenger Car Truck Rubber 35 lbs. per unit 78 lbs. per unit Steel belts 5 lbs. per unit 8 lbs. per unit 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, 20Y9. Safety Grip Company Direct Materials Purchases Budget For the Year Ending December 31, 20Y9 Rubber Steel Belts Total Pounds required for production: Passenger tires fill in the blank 1 lbs. fill in the blank 2 lbs. Truck tires fill in the…
Direct materials purchases budget Anticipated sales for Safety Grip Company were 62,000 passenger car tires and 19,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: Passenger Car 25 lbs. per unit 58 lbs. per unit 6 lbs. per unit 15 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 58,000 and 13, pounds, respectively. The estimated beginning inventories for rubber and steel belts are 68,000 and 10,000 pounds, respectively. Prepare a direct materials purchases budget for Safety Grip Company for the year ended December 31, 20Y9. Rubber Steel belts Truck

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