Prepare a sales budget, production budget, direct materials budget for silicon and solution, and a direct labor budget
Prepare a sales budget, production budget, direct materials budget for silicon and solution, and a direct labor budget
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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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 30 minutes of direct labor at a labor rate of $18 per hour. Desired inventory levels are:
|
Jan. 31 |
Feb. 28 |
Mar. 31 |
Beginning inventory |
|
|
|
Finished goods |
4,500 |
4,900 |
5,000 |
Direct materials: Silicon |
8,500 |
9,100 |
9,200 |
Direct materials: Solution |
11,200 |
12,000 |
13,000 |
Required:
Prepare a sales budget, production budget, direct materials budget for silicon and solution, and a direct labor budget.
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