Reference no: EM132791138

Lens & Shades sells sunglasses for $37 each and estimates sales of 21,000 units in January and 19,000 in February. Each lens consists of 2.00 mm of plastic costing $2.50 per mm, 1.7 oz of dye costing $2.80 per ounce, and 0.50 hours of direct labor at a labor rate of $18 per unit.

Desired inventory levels are:

                                                                Jan.              Feb.                Mar.
Beginning inventory Finished goods     3,500         3,800          4,500
Direct materials: plastic                 4,100            4,500            4,600
Direct materials: dye                     10,100           11,300           12,200

Problem 1: What are the sales budget, production budget, direct materials budget for plastic and dye solutions, and direct labor budget?