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Business, 30.04.2021 19:40 slicknikk

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 inventory—steel, January 1 40,000 pounds Target inventory—steel, December 31 80,000 pounds Raw materials inventory—glass, January 1 6,000 square feet Target inventory—glass, December 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 Lock Tight. b. Using the production schedule, develop the direct materials purchase budgets for steel and glass.

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