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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