Q1: 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 (use the formats shown in the textbook): Lens Junction Sales Budget For the Two Months Ending Feb, 28, 2019 January February Total for the Two Months Lens Junction Production Budget For the Two Months Ending Feb, 28, 2019 January February Total for the Two Months

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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Q1: 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 (use the formats shown in the textbook):

Lens Junction
Sales Budget
For the Two Months Ending Feb, 28, 2019
	January	February



Total for the Two Months

Lens Junction
Production Budget
For the Two Months Ending Feb, 28, 2019
	January	February





Total for the Two Months

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Prepare a direct materials budget for silicon and solution, and
a direct labor budget.

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