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Problem 21-2A (Part Level Submission)

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

An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $661,000 for product JB 50 and $365,000 for product JB 60, and administrative expenses of $544,000 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 the sales budget for the year.

B. Prepare the Production Budget

C. Prepare the direct materials budget for the year

D. Prepare the direct labor budget for the year

E. Prepare the budgeted multiple step income statement for the year (income taxes are not allocated to products)

Product JB 50 Product JB 60 402,600 $23 201,800 $27 28,700 34,800 19,900 14,100 2 3 Sales budget: Anticipated volume in units Unit selling price Production budget: Desired ending finished goods units Beginning finished goods units Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds Cost per pound Direct labor budget: Direct labor time per unit Direct labor rate per hour Budgeted income statement: Total unit cost 34,800 43,300 $3 19,900 12,700 $3 0.4 0.6 $12 $12 $12 $22 DELEON INC. Sales Budget JB 50 JB 60 Total Expected unit sales Unit selling price $ Total sales $ $ DELEON INC. Production Budget JB 50 JB 60 DELEON INC. Direct Materials Budget . JB 50 JB 60 Total $ $ $ $ $ DELEON INC. Direct Labor Budget JB 50 JB 60 Total $ $ $ $ the Dudegeted multiple step inco Statemen ICES. DELEON INC. Budgeted Income Statement JB 50 JB 60 Total $ $ $ $ $

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