Lens Junction has required production of 15,400 units in January and 18,100 in February. Each lens consists of 2 pounds of silicon costing $2.50 per pound and 3 ounces of solution costing $3 per ounce. Desired inventory levels are: Jan. Feb. Mar. Beginning Inventory: Finished Goods (units) 4,500 4,900 5,000 DM - Silicon (pounds) 8,500 9,100 9,200 DM - Solution (ounces) 11,200 12,000 13,000 PLEASE NOTE: Units are rounded to whole numbers with commas as needed (i.e. 1,234) - no labels. All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345), except for any "per" amounts (units, pounds, ounces, or dollars), which are rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56) - no labels. Cost per Pound Desired Ending Inventory DM per Unit Ounces Needed for Production Required DM Ounces Pounds Needed for Production Units to be Produced Total Cost of DM Purchase Required DM Pounds Beginning Inventory Cost per Ounce Total DM Required Using the information above, along with the terms above, prepare a direct materials (DM) budget for silicon for the the two months of January and February
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
2. Lens Junction has required production of 15,400 units in January and 18,100 in February. Each lens consists of 2 pounds of silicon costing $2.50 per pound and 3 ounces of solution costing $3 per ounce. Desired inventory levels are:
| Jan. | Feb. | Mar. | |
| Beginning Inventory: | |||
| Finished Goods (units) | 4,500 | 4,900 | 5,000 |
| DM - Silicon (pounds) | 8,500 | 9,100 | 9,200 |
| DM - Solution (ounces) | 11,200 | 12,000 | 13,000 |
PLEASE NOTE: Units are rounded to whole numbers with commas as needed (i.e. 1,234) - no labels. All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345), except for any "per" amounts (units, pounds, ounces, or dollars), which are rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56) - no labels.
| Cost per Pound |
Desired Ending Inventory |
DM per Unit |
| Ounces Needed for Production | Required DM Ounces | Pounds Needed for Production |
| Units to be Produced |
Total Cost of DM Purchase |
Required DM Pounds |
| Beginning Inventory |
Cost per Ounce |
Total DM Required |
Using the information above, along with the terms above, prepare a direct materials (DM) budget for silicon for the the two months of January and February
| Lens Junction |
| Direct Materials (DM) Budget - Silicon |
| For the Two Months Ending Feb. 28, 2019 |
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Using the information above, along with the terms above, prepare a direct materials (DM) budget for solution for the the two months of January and February
| Lens Junction |
| Direct Materials (DM) Budget - Solution |
| For the Two Months Ending Feb. 28, 2019 |
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