Deleon Inc. is preparing its annual budgets for the year endingDecember 31, 2020. Accounting assistants furnish the data shownbelow.
| | Product
JB 50 | | Product
JB 60 |
|---|
| Sales budget: | | | | |
|---|
| Anticipated volume in units | | 402,100 | | 204,400 |
|---|
| Unit selling price | | $23 | | $27 |
|---|
| Production budget: | | | | |
|---|
| Desired ending finished goodsunits | | 29,900 | | 18,100 |
|---|
| Beginning finished goods units | | 33,300 | | 14,600 |
|---|
| Direct materials budget: | | | | |
|---|
| Direct materials per unit (pounds) | | 1 | | 2 |
|---|
| Desired ending direct materialspounds | | 31,100 | | 16,700 |
|---|
| Beginning direct materials pounds | | 42,500 | | 12,000 |
|---|
| Cost per pound | | $2 | | $4 |
|---|
| Direct labor budget: | | | | |
|---|
| Direct labor time per unit | | 0.3 | | 0.6 |
|---|
| Direct labor rate per hour | | $12 | | $12 |
|---|
| Budgeted income statement: | | | | |
|---|
| Total unit cost | | $13 | | $21 |
|---|
An accounting assistant has prepared the detailed manufacturingoverhead budget and the selling and administrative expense budget.The latter shows selling expenses of $664,000 for product JB 50 and$365,000 for product JB 60, and administrative expenses of $545,000for product JB 50 and $345,000 for product JB 60. Interest expenseis $150,000 (not allocated to products). Income taxes are expectedto be 30%
Complete a Budgeted Income Statement
