Why might safe lsquon blights target level ofsteel

Reference no: EM13481892

Safe' n' Bright, inc., produces outside doors forinstallation on homes. The following information was gathered to prepare budgets for the upcoming year beginning January 1:

Sales forecast inunits...............................................................5,500doors

Finished goods inventory, Jan.1...................................................620doors

Target finished goods inventory, Dec.31.......................................480doors

Raw materials inventory-steel, Jan1..........................................40,000pounds

Target inventory-steel, Dec.31................................................80,000pounds

Raw materials inventory-glass, Jan.1.......................................6,000square feet

Target inventory-glass, Dec.31.............................................4,000square feet

Budgeted purchaseprice-steel................................................$4per pound

Budgeted purchaseprice-glass.............................................$2per square foot

The manufacture of each door requires 20 pounds of steel and 6square feet of glass.

1) Prepare the production schedule in units for safe‘n' Bright.

2) Using the production schedule, develop the direct materialspurchase budgets for steel and glass.

3) Why might safe ‘n' Blight's target level ofsteel inventory be higher than last year's ending balance and its target level of glass inventory be lower than last year'sending balance?

Reference no: EM13481892

Questions Cloud

Discuss the circumstances under which this scenario could : the president of frogger company is puzzled. during the last accounting period the company experienced a net loss of

Compute each of the following operating income income loss : the hot aire company reported the following items on its income statement for2007.a. net operating revenues 956000b.

Why is net profit always greater in absorption costing : why is net profit always greater in absorption costing than indirect costing? why cost accountants use two types of

Need fixed cost variable cost is 125 and is correct please : need fixed cost variable cost is 1.25 and is correct please show how you got your answerwendys widgets builds the

Why might safe lsquon blights target level ofsteel : safe n bright inc. produces outside doors forinstallation on homes. the following information was gathered to prepare

How much of the refund if any must l a and paula include in : l. a. and paula file as married taxpayers. in august of this year they received a 5200 refund of state income taxes

When a parent uses the equity method throughout the year to : 1.parrett corp. bought one hundred percent of jones inc. on january 1 2009 at a price in excess of the subsidiarys fair

Assume that only one product is to be produced in the : a company makes two models

The cost function of a company is c001x square2x25 where : the cost function of a company is c0.01x square2x25 where xis the produced unit of its price is rs.30. the profit

User Account

All Pages