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    Preparing Budgets

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    Safe and Bright Inc produces outside doors for installation on homes. The following information was gathered to prepare budgets for the upcoming year beginning Jan 1:
    Sales force in units...........................................................................5,500 doors
    Finished goods inventory Jan 1......................................................... 620 doors
    Targe finished good inventory Dec 31............................................... 480 doors
    Raw materials inventory-steel Jan 1.................................................. 40,000 pounds
    Target inventory-steel Dec 31............................................................ 80,000 pounds
    Raw material inventory-glass Jan 1.....................................................6,000 sq feet
    Target inventory-glass Dec 31............................................................ 4,000 sq feet
    Budgeted purchase price-steel.............................................................$4 per pound
    Budgeted purchase price-glass........................................................... $2 per sq 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 and Bright.
    B-using the production schedule develop the direct materials purchase budgets for steel and glass.
    C-why might Safe and Bright target level of steel inventory be higher than last years ending balance and its target level of glass inventory be lower than last years ending balance?

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    https://brainmass.com/business/business-math/preparing-budgets-514838

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    PREPARING BUDGETS
    Safe and Bright Inc. produces outside doors for installation on homes. The following information was gathered to prepare budgets for the upcoming year beginning Jan 1:
    Sales force in units...........................................................................5,500 doors
    Finished goods inventory Jan 1......................................................... 620 doors
    Target finished good inventory Dec 31............................................... 480 doors
    Raw materials ...

    Solution Summary

    The solution prepares budgets for the produces outside.

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