Lens Junction sells lenses for $45 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 $18 per hour. Desired inventory levels are:

Prepare a sales budget, production budget, direct materials budget for silicon and solution, and a direct labor budget.

Jan. 31 Feb. 28 Mar. 31 Beginning inventory Finished goods 4,500 8,500 11,200 4,900 9,100 12,000 5,000 9,200 13,000 Direct materials: silicon Direct materials: solution