eBookPrint ItemQuestion Content AreaLens Junction sells lenses for $43 each and is estimating sales of 16,000 units in January and 17,000 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 $16 per hour. Desired inventory levels are: Jan. 31Feb. 28Mar. 31Beginning inventory Finished goods4,3004,9005,200Direct materials: silicon8,3008,9009,300Direct materials: solution11,40012,10012,800 Lens JunctionDirect Materials Budget for SolutionFor the Two Months Ending February 28, 20XXJanuaryFebruaUnits to be ProducedDirect Material per UnitTotal Ounces Needed for ProductionTotal Material RequiredOunces of Direct Material Purchase RequirementsCost per OunceTotal Cost of Direct Material PurchaseTotal Direct Materials Solution for Two Months Ending February 28, 20XXPrepare a direct labor budget.Lens JunctionDirect Labor BudgetFor the Two Months Ending February 28, 20XXJanuaryFebruaryUnits to be ProducedDirect Labor Hours per UnitTotal Required Direct Labor Hours Labor Cost per HourTotal Direct Labor CostTotal Direct Labor Budget For Two Months Ending February 28, 20XX00

Budget means the expected value of future. Budget is not affected by the actual value as it is…

Answered: Lens Junction Direct Materials Budget…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question Content Area

Lens Junction sells lenses for $43 each and is estimating sales of 16,000 units in January and 17,000 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 $16 per hour. Desired inventory levels are:

	Jan. 31	Feb. 28	Mar. 31
Beginning inventory
Finished goods	4,300	4,900	5,200
Direct materials: silicon	8,300	8,900	9,300
Direct materials: solution	11,400	12,100	12,800

Lens Junction
Direct Materials Budget for Solution
For the Two Months Ending February 28, 20XX
January
Februa
Units to be Produced
Direct Material per Unit
Total Ounces Needed for Production
Total Material Required
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
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
00

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