Senko Co. manufactures and sells two products: plastic boxes and plastic trays. Estimated use of materials and time required per unit are:

Boxes Trays

Material A 2 lbs. 1 lb.

Material B 4 lbs. 4 lbs.

Direct Labor 2 hours 2 hours

Overhead is applied on the basis of $2.00 per DL hour. The estimated sales volume per product produced for the current year are:

Boxes Trays

Sales 42,000 24,000

The beginning inventories are expected to be as follows:

Material A 4,000 lbs.

Material B 6,000 lbs.

Boxes 1,000 units

Trays 500 units

The desired inventory level is equivalent to a months production requirements, assuming constant sales throughout the year.

Required: Prepare the purchases budget in lbs. and compute the overhead to be charged to production.

Scent Station produces 3 perfumes. The sales department prepared the following tentative sales budget for the first quarter of the coming year:

Perfume Per 100 mL bottle

Dancing Sun 250,000

Moon Glow 175,000

Stardust 300,000

The following inventory levels have been established:

	WORK IN PROCESS	FINISHED GOODS
	Beginning	Ending	Beginning Bottles	Ending Bottles
Perfume	Bottles	% Processed	Bottles	% Processed
Dancing Sun	4,000	50%	7,000	60%	16,000	15,000
Moon Glow	6,000	30%	5,000	40%	12,000	10,000
Stardust	8,000	70%	8,000	75%	25,000	20,000

Required: Prepare a production budget per product produced.