eBook Calculator Lens Junction sells lenses for $43 each and is estimating sales of 14,000 units in January and 18,000 in February. Each lens consists of 2 pounds of silicon costing $2.50 per pound, 3 oz of solution costing $3 per ounce, and 30 minutes of direct laborat a labor rate of $20 per hour. Desired inventory levels are: Jan. 31 Feb. 28 Mar. 31 Beginning inventory in you 700 4,800 9,300 9,400 is solution 11,400 11,900 12,900 Prepare a sales budget. Lens Junction Sales Budget For the Two Months Ending February 28, 20XX January February Expected Sales (Units) 14,000 18.00 Sales Price per Unit 43 Total Sales Revenue 60,000 774,000 Total 1,376,000 Lens Junction Direct Materials Budget for Silicon For the Two Months Ending February 28, 20XX January February Units to be Produced 14,200 18,100 2 2 Direct Material per Unit 28,400 36,200 Total Ounces Needed for Production Add: Desired Ending Invertory Total Material Required Less: Beginning Inventory 2.50 2.50 Ounces of Direct Material Purchase Requirements Cost per Ounce Total Cost of Direct Material Purchase Total Direct Materials Silicon for Two Months Ending February 28, 20XX Prepare direct materials budget for solution. Lens Junction Direct Materials Budget for Solution For the Two Months Ending February 28, 20XX January February Units to be Produced 14,200 18,100 3 Direct Material per Unit 3 42,600 54,300 Total Ounces Needed for Production Add: Desired Ending Inventory Total Material Required Less: Beginning Inventory Ounces of Direct Material Purchase Requirements 3 3 Cost per Ounce Total Cost of Direct Material Purchase $ 142,000 X 142,000 X Total Direct Materials Solution for Two Months Ending February 28, 20XX Lens Junction sells lenses for $43 each and is estimating sales of 14,000 units in January and 18,000 in February. Each lens consists of 2 pounds of silicon costing $2.50 per pound, 3 oz of solution costing $3 per ounce, and 30 minutes of direct laborat a labor rate of $20 per hour. Desired Inventory levels are: Jan. 31 Feb. 28 Mar. 31 Beginning inventory Finished goods 4,500 4,700 4,800 Direct materials: silicon 8,300 9,300 9,400 Direct materials: solution 11,400 11,900 12,900 Prepare a sales budget Lens Junction Sales Budget For the Two months Ending February 28, 20XX January February Expected Sales (Units) 14,000 18,000 Sales Price per Unit 43 Total Sales Revenue 602,000 774,000 Total 1,376,000 43 Feedback Check My Work The sales budget is completed first followed by the production budget. Information from the production budget is then used for the direct materials and direct labor budgets, Previous Next ChedWork