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 ounces of solution costing $3 per ounce, and 30 minutes of direct labor at a labor rate of $18 per hour. Desired inventory levels are: Jan. Feb. Mar. Beginning Inventory: Finished Goods 4,500 4,900 5,000 DM - Silicon 8,500 9,100 9,200 DM - Solution 11,200 12,000 13,000 PLEASE NOTE: Units are rounded to whole numbers with commas as needed (i.e. 1,234). All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). Budgeted Costs Desired Ending Inventory Sales Price per Unit Expected Sales (units) Required Production Purchases Required Beginning Inventory Total Sales Revenue Total Required Units Using the information above, along with the terms above, prepare a sales budget and a production budget for the first two months of 2019 Lens Junction Sales Budget For the Two Months Ending Feb, 28, 2019 X January February ? ? ? ? ? ? ? ? ? Total for the Two Months ?
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 ounces of solution costing $3 per ounce, and 30 minutes of direct labor at a labor rate of $18 per hour. Desired inventory levels are: Jan. Feb. Mar. Beginning Inventory: Finished Goods 4,500 4,900 5,000 DM - Silicon 8,500 9,100 9,200 DM - Solution 11,200 12,000 13,000 PLEASE NOTE: Units are rounded to whole numbers with commas as needed (i.e. 1,234). All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). Budgeted Costs Desired Ending Inventory Sales Price per Unit Expected Sales (units) Required Production Purchases Required Beginning Inventory Total Sales Revenue Total Required Units Using the information above, along with the terms above, prepare a sales budget and a production budget for the first two months of 2019 Lens Junction Sales Budget For the Two Months Ending Feb, 28, 2019 X January February ? ? ? ? ? ? ? ? ? Total for the Two Months ?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
Section: Chapter Questions
Problem 2CE: Sterling Corporation has an EOQ of 5,000 units. The company uses an average of 500 units per day. An...
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1. 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 ounces of solution costing $3 per ounce, and 30 minutes of direct labor at a labor rate of $18 per hour. Desired inventory levels are:
| Jan. | Feb. | Mar. | |
| Beginning Inventory: | |||
| Finished Goods | 4,500 | 4,900 | 5,000 |
| DM - Silicon | 8,500 | 9,100 | 9,200 |
| DM - Solution | 11,200 | 12,000 | 13,000 |
PLEASE NOTE: Units are rounded to whole numbers with commas as needed (i.e. 1,234). All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345).
| Budgeted Costs | Desired Ending Inventory | Sales Price per Unit |
| Expected Sales (units) | Required Production | Purchases Required |
| Beginning Inventory | Total Sales Revenue | Total Required Units |
Using the information above, along with the terms above, prepare a sales budget and a production budget for the first two months of 2019
| Lens Junction |
| Sales Budget |
| For the Two Months Ending Feb, 28, 2019 |
| X |
|
|
||
| ? | ? | ? | ||
| ? | ? | ? | ||
| ? | ? | ? |
|
? |
| Lens Junction |
| Production Budget |
| For the Two Months Ending Feb, 28, 2019 |
| X |
|
|
||
| ? | ? | ? | ||
| ? | ? | ? | ||
| ? | ? | ? | ||
| ? | ? | ? | ||
| ? | ? | ? |
|
? |
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