Lens Junction sells lenses for $44 each and is estimating sales of 16,000 units in January and 19,000 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 $22 per hour. Desired inventory levels are: Jan. 31 Feb. 28 Mar. 31 Beginning inventory Finished goods 4,500 5,100 5,200 Direct materials: silicon 8,600 9,000 9,300 Direct materials: solution 11,400 12,200 12,800 c). Prepare direct materials budget for silicon. d). Prepare a direct labor budget.
Lens Junction sells lenses for $44 each and is estimating sales of 16,000 units in January and 19,000 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 $22 per hour. Desired inventory levels are: Jan. 31 Feb. 28 Mar. 31 Beginning inventory Finished goods 4,500 5,100 5,200 Direct materials: silicon 8,600 9,000 9,300 Direct materials: solution 11,400 12,200 12,800 c). Prepare direct materials budget for silicon. d). Prepare a direct labor budget.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Lens Junction sells lenses for $44 each and is estimating sales of 16,000 units in January and 19,000 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 $22 per hour. Desired inventory levels are:
| Jan. 31 | Feb. 28 | Mar. 31 | |
| Beginning inventory | |||
| Finished goods | 4,500 | 5,100 | 5,200 |
| Direct materials: silicon | 8,600 | 9,000 | 9,300 |
| Direct materials: solution | 11,400 | 12,200 | 12,800 |
c). Prepare direct materials budget for silicon.
d). Prepare a direct labor budget.
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