A. 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 oz of solution costing $3 per ounce, and 30minutes of direct labor at a labor rate of $18 per hour. Desired inventory levels are:Jan. 31Feb. 28Mar. 31Beginning inventoryFinished goodsDirect materials: silicon4,5008,50011,2004,9009.10012.0005,0009.20013,000Direct materials: solutionPrepare a sales budget, production budget, direct materials budget for silicon and solution, and a directlabor budget.B. The data shown were obtained from the financial records of Italian Exports, Inc., for March:Estimated sales$560,000SalesPurchases567.923294,8231050,320Ending inventoryAdministrative salariesMarketing expenseSales commissionsRent expenseDepreciation expenseUtilitiesSales are expected to increase each month by10%. Prepare a budgeted income statement.7,5001,1002,50015%***Taxes*of next month's sales**of sales***of income before taxes C. Echo Amplifiers prepared the following sales budget for the first quarter of 2018:Jan.Feb.Mar.1,000$ 100$10,000Units1,2001,500$ 100Sales priceBudgeted salesS_ 100$12,000$15,000It also has this additional information related to its expenses:Direct material per unitDirect labor per unitVariable manufacturing overhead per hourFixed manufacturing overhead per monthSales commissions per unitSales salaries per monthDelivery expense per unitFactory utilities per monthAdministrative salaries per monthMarketing expenses per monthInsurance expense per monthDepreciation expense per month$ 1.5020.503,000155,0000.505,00020,0008,00011,0009,000Prepare a sales and administrative expense budget foreach month in the quarter ending March 31, 2018.

Answered: Prepare a sales budget, production…

Business

Accounting

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

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 1PA: Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and...

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