safe n bright inc produces outside doors for installation on home 385504

Safe ‘n Bright, Inc., produces outside doors for installation on homes. The following information was gathered to prepare budgets for the upcoming year beginning January : Sales forecast in units 5,500 doors Finished goods inventory, Jan 1 620 doors Target finished goods inventory, Dec 31 480 doors Raw materials inventory steel, Jan 1 40,000 pounds Target inventory steel, Dec 31. 80,000 pounds Raw materials inventory glass, Jan 1 6,000 square feet Target inventory glass, Dec 31. 4,000 square feet Budgeted purchase price steel $4 per pound |Budgeted purchase price glass $2 per square foot | The manufacture of each door requires 20 pounds of steel and 6 square feet of glass. a. Prepare the production schedule in units for Safe ‘n Bright. b. Using the production schedule, develop the direct materials purchase budgets for steel and glass.

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