Question
Lens & Shades has required production of 21,300 units in January and 19,700 in February. Each lens consists of 2.00 CM of plastic costing $2.50
Lens & Shades has required production of 21,300 units in January and 19,700 in February. Each lens consists of 2.00 CM of plastic costing $2.50 per CM and 1.70 ounces of dye costing $2.80 per ounce. Desired inventory levels are:
Jan. | Feb. | Mar. | |
Beginning Inventory: | |||
Finished Goods (units) | 3,500 | 3,800 | 4,500 |
DM - Plastic (millimeter) | 4,100 | 4,500 | 4,600 |
DM - Solution (ounces) | 10,100 | 11,300 | 12,200 |
PLEASE NOTE: Units are rounded to whole numbers with commas as needed (i.e. 1,234) - no labels. All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345), except for any "per" amounts (units, pounds, cm, ounces, or dollars), which are rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56) - no labels.
Cost per CM | Desired Ending Inventory | DM per Unit |
Ounces Needed for Production | Required DM Ounces | CMs Needed for Production |
Units to be Produced | Total Cost of DM Purchase | Required DM CMs |
Beginning Inventory | Cost per Ounce | Total DM Required |
Using the information above, along with the terms above, prepare a direct materials (DM) budget for plastic for the the two months of January and February(use the format shown in the textbook):
Lens & Shades | ||
Direct Materials (DM) Budget - Plastic | ||
For the Two Months Ending Feb. 28, 2019 | ||
January | February | |
Total DM - Plastic for Two Months |
Using the information above, along with the terms above, prepare a direct materials (DM) budget for dye for the the two months of January and February(use the format shown in the textbook):
Lens & Shades | ||
Direct Materials (DM) Budget - Dye | ||
For the Two Months Ending Feb. 28, 2019 | ||
January | February | |
Total DM - Dye for Two Months |
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