Lens Junction sells lenses for $43 each and is estimating sales of 15,000 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 labor at a labor rate of $14 per hour. Desired inventory levels are:

	Jan. 31	Feb. 28	Mar. 31
Beginning inventory
Finished goods	4,500	4,700	5,100
Direct materials: silicon	8,600	9,000	9,300
Direct materials: solution	11,100	12,000	12,800

Prepare a sales budget.

Lens Junction Sales Budget For the Two Months Ending February 28, 20XX

	January	February
Expected Sales (Units)	___	___
Sales Price per Unit	$___	$___
Total Sales Revenue	$___	$___
Total	$___

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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.

Prepare a production budget.

Lens Junction Production Budget For the Two Months Ending February 28, 20XX

	January	February
Expected Sales	___	___
Add: Desired Ending Inventory	___	___
Total Required Units	___	___
Less: Beginning Inventory	___	___
Required Production	___	___
Total	___

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Partially correct

Prepare direct materials budget for silicon.

Lens Junction Direct Materials Budget for Silicon For the Two Months Ending February 28, 20XX

	January	February
Units to be Produced	___	___
Direct Material per Unit	___	___
Total Ounces Needed for Production	___	___
Add: Desired Ending	___	___
Total Material Required	___	___
Less: Beginning Inventory	___	___
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		___

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Partially correct

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	___	___
Direct Material per Unit	___	___
Total Ounces Needed for Production	___	___
Add: Desired Ending Inventory	___	___
Total Material Required	___	___
Less: Beginning Inventory	___	___
Ounces of Direct Material Purchase Requirements	___	___
Cost per Ounce	$___	$___
Total Cost of Direct Material Purchase	$___	$___
Total Direct Materials Solution for Two Months Ending February 28, 20XX		$___

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Partially correct

Prepare a direct labor budget.

Lens Junction Direct Labor Budget For the Two Months Ending February 28, 20XX

	January	February
Units to be Produced	___	___
Direct Labor Hours per Unit	___	___
Total Required Direct Labor Hours	___	___
Labor Cost per Hour	$___	$___
Total Direct Labor Cost	$___	$___
Total Direct Labor Budget For Two Months Ending February 28, 20XX		$___