60.1K

Verified Solution

Link Copied!

Deleon Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown below.

		Product JB 50		Product JB 60
Sales budget:
Anticipated volume in units		404,400		201,000
Unit selling price		$22		$27
Production budget:
Desired ending finished goods units		28,800		17,600
Beginning finished goods units		34,100		13,100
Direct materials budget:
Direct materials per unit (pounds)		1		2
Desired ending direct materials pounds		34,600		16,400
Beginning direct materials pounds		41,100		13,000
Cost per pound		$2		$4
Direct labor budget:
Direct labor time per unit		0.3		0.6
Direct labor rate per hour		$10		$10
Budgeted income statement:
Total unit cost		$13		$22

An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $662,000 for product JB 50 and $365,000 for product JB 60, and administrative expenses of $545,000 for product JB 50 and $345,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%.

a) Prepare for the sales budget for the year b)Prepare Production budget for the year. c) Prepare for the direct materials for the year d) Prepare for the direct Labor budget for the year e) Prepare for the income statement budget for the year

Answer & Explanation Solved by verified expert

See Answer