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 ?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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