Question

Using the following budgeted information for production of 9,000 and 14,000 units, prepare a flexible budget for 19,000 units.

Lens Junction sells lenses for $45 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 $20 per hour. Desired inventory levels are: Jan. 31 Feb. 28 Mar. 31 Beginning inventory Finished goods 4,300 4,900 5,100 Direct materials: silicon 8,300 9,200 9,000 Direct materials: solution 11,000 12,100 12,900 Prepare a sales budget. Lens Junction Sales Budget For the Two Months Ending February 28, 20XX January February Expected Sales (Units) fill in the blank 5187e0ffe078043_1 fill in the blank 5187e0ffe078043_2 Sales Price per Unit $fill in the blank 5187e0ffe078043_3 $fill in the blank 5187e0ffe078043_4 Total Sales Revenue $fill in the blank 5187e0ffe078043_5 $fill in the blank 5187e0ffe078043_6 Total $fill in the blank 5187e0ffe078043_7 Prepare a production budget. Lens Junction Production Budget For the Two Months Ending February 28, 20XX January February Expected Sales fill in the blank 726b0ff76f7ffc8_1 fill in the blank 726b0ff76f7ffc8_2 Add: Desired Ending Inventory fill in the blank 726b0ff76f7ffc8_4 fill in the blank 726b0ff76f7ffc8_5 Total Required Units fill in the blank 726b0ff76f7ffc8_6 fill in the blank 726b0ff76f7ffc8_7 Less: Beginning Inventory fill in the blank 726b0ff76f7ffc8_9 fill in the blank 726b0ff76f7ffc8_10 Required Production fill in the blank 726b0ff76f7ffc8_11 fill in the blank 726b0ff76f7ffc8_12 Total fill in the blank 726b0ff76f7ffc8_13 Prepare direct materials budget for silicon. Lens Junction Direct Materials Budget for Silicon For the Two Months Ending February 28, 20XX January February Units to be Produced fill in the blank 74d97208aff3027_1 fill in the blank 74d97208aff3027_2 Direct Material per Unit fill in the blank 74d97208aff3027_3 fill in the blank 74d97208aff3027_4 Total Ounces Needed for Production fill in the blank 74d97208aff3027_5 fill in the blank 74d97208aff3027_6 Add: Desired Ending Inventory fill in the blank 74d97208aff3027_8 fill in the blank 74d97208aff3027_9 Total Material Required fill in the blank 74d97208aff3027_10 fill in the blank 74d97208aff3027_11 Less: Beginning Inventory fill in the blank 74d97208aff3027_13 fill in the blank 74d97208aff3027_14 Ounces of Direct Material Purchase Requirements fill in the blank 74d97208aff3027_15 fill in the blank 74d97208aff3027_16 Cost per Ounce $fill in the blank 74d97208aff3027_17 $fill in the blank 74d97208aff3027_18 Total Cost of Direct Material Purchase $fill in the blank 74d97208aff3027_19 $fill in the blank 74d97208aff3027_20 Total Direct Materials Silicon for Two Months Ending February 28, 20XX $fill in the blank 74d97208aff3027_21 Prepare direct materials budget for solution. Lens Junction Direct Materials Budget for Solution For the Two Months Ending February 28, 20XX January February Units to be Produced fill in the blank 9676beffe004fd4_1 fill in the blank 9676beffe004fd4_2 Direct Material per Unit fill in the blank 9676beffe004fd4_3 fill in the blank 9676beffe004fd4_4 Total Ounces Needed for Production fill in the blank 9676beffe004fd4_5 fill in the blank 9676beffe004fd4_6 Add: Desired Ending Inventory fill in the blank 9676beffe004fd4_8 fill in the blank 9676beffe004fd4_9 Total Material Required fill in the blank 9676beffe004fd4_10 fill in the blank 9676beffe004fd4_11 Less: Beginning Inventory fill in the blank 9676beffe004fd4_13 fill in the blank 9676beffe004fd4_14 Ounces of Direct Material Purchase Requirements fill in the blank 9676beffe004fd4_15 fill in the blank 9676beffe004fd4_16 Cost per Ounce $fill in the blank 9676beffe004fd4_17 $fill in the blank 9676beffe004fd4_18 Total Cost of Direct Material Purchase $fill in the blank 9676beffe004fd4_19 $fill in the blank 9676beffe004fd4_20 Total Direct Materials Solution for Two Months Ending February 28, 20XX $fill in the blank 9676beffe004fd4_21 Prepare a direct labor budget. Lens Junction Direct Labor Budget For the Two Months Ending February 28, 20XX January February Units to be Produced fill in the blank b7ad30f8405dfe8_1 fill in the blank b7ad30f8405dfe8_2 Direct Labor Hours per Unit fill in the blank b7ad30f8405dfe8_3 fill in the blank b7ad30f8405dfe8_4 Total Required Direct Labor Hours fill in the blank b7ad30f8405dfe8_5 fill in the blank b7ad30f8405dfe8_6 Labor Cost per Hour $fill in the blank b7ad30f8405dfe8_7 $fill in the blank b7ad30f8405dfe8_8 Total Direct Labor Cost $fill in the blank b7ad30f8405dfe8_9 $fill in the blank b7ad30f8405dfe8_10 Total Direct Labor Budget For Two Months Ending February 28, 20XX $fill in the blank b7ad30f8405dfe8_11

Total expenses $fill in the blank 1

Answer 1

Lens Junction
Sales Budget
For the Two Months Ending February 28, 20XX
Particulars	January	February
Expected Sales (Units)(A)	16,000	19,000
Sales Price per Unit(B)	45	45
Total Sales Revenue(A*B)	720,000	855,000
Total		1,575,090
Lens Junction
Production Budget
For the Two Months Ending February 28, 20XX
Particulars	January	February
Expected Sales (Units)(A)	16,000	19,000
Add: Desired Ending Inventory	4,900	5,100
Total Required Units(A+B=C)	20,900	24,100
Less: Beginning Inventory(D)	4,300	4,900
Required Production(C-D)	16,600	19,200
Total		35,800
Lens Junction
Direct Materials Budget for Silicon
For the Two Months Ending February 28, 20XX
Particulars	January	February
Units to be Produced(A)	16,600	19,200
Direct Material per Unit(B)	2	2
Total Ounces Needed for Production(A*B)	33,200	38,400
Add: Desired Ending Inventory	9,200	9,000
Total Material Required	42,400	47,400
Less: Beginning Inventory	8300	9,200
Pound of Direct Material Purchase Requirements	34,100	38200
Cost per pound	2.5	2.5
Total Cost of Direct Material Purchase	85,250	95,500
Total Direct Materials Solution for Two Months		180,750
Lens Junction
Direct Materials Budget for solution
For the Two Months Ending February 28, 20XX
Particulars	January	February
Units to be Produced(A)	16,600	19,200
Direct Material per Unit(B)	3	3
Total Ounces Needed for Production(A*B)	49,800	57,600
Add: Desired Ending Inventory	12,100	12,900
Total Material Required	61,900	70,500
Less: Beginning Inventory	11000	12,100
Ounce of Direct Material Purchase Requirements	50,900	58400
Cost per Ounce	3	3
Total Cost of Direct Material Purchase	152,700	175,200
Total Direct Materials Solution for Two Months		327,900
Lens Junction
Direct Materials Budget for solution
For the Two Months Ending February 28, 20XX
Particulars	January	February
Units to be Produced(A)	16,600	19,200
Direct Labor Hours per Unit(B)	0.5	0.5
Total Required Direct Labor Hours(A*B=C)	8,300	9,600
Labor Cost per Hour(D)	20	20
Total Direct Labor Cost(C*D)	166,000	192,000
Total Direct Labor Budget For Two Months		358,000
Lens Junction
flexible budget for 19,000 units.
Particulars	Per Unit	19000 Units
Total Sales Revenue(A*B)	45.00	855,000.00
Direct Material
Silicon	5.00	95,000.00
Solution	9.00	171,000.00
Labour Cost	10.00	190,000.00
Operating Profit	21.00	399,000.00