A company produces doors. The following information wasgathered to prepare budge

Question

A company produces doors. The following information wasgathered to prepare budgets for the upcoming year beginning January1: sales forecast inunits................................... 5,500 doors finished goods inventory,Jan1.......................   620 doors target finished goods inventory,Dec1.............  480 doors raw materials inventory-steel, Jan1................ 40,000lbs targetinventory-steel,Dec1..........................   80,000lbs raw materialsinventory-glass,Jan1..................   6,000 squarefeet targetinventory-glass,Dec1............................   4,000square feet budgeted purchase price-steel......................... $4 perlb budgeted purchase price-glass.........................$2 persquare foot The manufacture of each door requires 20 lbs of steel and 6square feet of glass **Prepare the production schedule in units for thecompany A company produces doors. The following information wasgathered to prepare budgets for the upcoming year beginning January1: sales forecast inunits................................... 5,500 doors finished goods inventory,Jan1.......................   620 doors target finished goods inventory,Dec1.............  480 doors raw materials inventory-steel, Jan1................ 40,000lbs targetinventory-steel,Dec1..........................   80,000lbs raw materialsinventory-glass,Jan1..................   6,000 squarefeet targetinventory-glass,Dec1............................   4,000square feet budgeted purchase price-steel......................... $4 perlb budgeted purchase price-glass.........................$2 persquare foot The manufacture of each door requires 20 lbs of steel and 6square feet of glass **Prepare the production schedule in units for thecompany

Explanation / Answer

Production Schedule ============== Salesforcast                                                                                             5,500doors Add : Target finished goods inventory on Dec.1 or31(check)                     480 doors                                                                                                                --------------                                  TotalUnitsrequired                                                 5,980doors Less : Opening Finished goods inventory on Jan.1                                       620doors                                                                                                               ----------------             Productionrequired                                                                  5,360doors                                                                                                             ============

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