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Lock Tight, Inc., produces outside doors for installation on homes. The following information was gathered to prepare budgets for the upcoming year beginning January 1.

Lock Tight, Inc., produces outside doors for installation on homes. The following information was gathered to prepare budgets for the upcoming year beginning January 1.

Sales forecast in units

6,500

doors

Finished goods inventory, January 1

720

doors

Target finished goods inventory, December 31

680

doors

Raw materials inventorysteel, January 1

40,000

pounds

Target inventorysteel, December 31

80,000

pounds

Raw materials inventoryglass, January 1

6,000

square feet

Target inventoryglass, December 31

4,000

square feet

Budgeted purchase pricesteel

$

4

per pound

Budgeted purchase priceglass

$

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 Lock Tight.

b.Using the production schedule, develop the direct materials purchase budgets for steel and glass.

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