QuestionDetails: A company produces doors. The following information wasgathered

Question

QuestionDetails: 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 ** using the production schedule, develop the direct materialspurchase budgets for steel and glass. QuestionDetails: 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 ** using the production schedule, develop the direct materialspurchase budgets for steel and glass. QuestionDetails: 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 ** using the production schedule, develop the direct materialspurchase budgets for steel and glass.

Explanation / Answer

Direct materials purchase budget ======================                                                                                        Steel                                                   Glass Production       5360 doorsx20lbs                              107,200 lbs      5360x 6 sq.ft              32,160sq. ft Add : raw materials - Steel inventory on Dec.1             80,000lbs                                           4,000 sq. ft                                                                                  --------------------------------------------------------       Total                                                                     187,200lbs                                          36,160sq. ft Less Openinginventory                                                 40,000lbs                                             6,000sq. ft                                                                                 ----------------------------------------------------------       TotalPurchases                                                   147,200lbs                                             30,160sq. ft. Cost ofPurchases                                                          $4perlb                                              $2per sq. ft.                                                                               -----------------------------------------------------------       Total Cost ofpurchases                                     $588,800                                                $60,320                                                                               ========================================

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