Response to the following problem:
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.