Quinn Inc. is preparing its annual budgets for the year ending December 31, 2016. Accounting assistants provide the following data:

An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expenses budget. The latter shows selling expenses of $560,000 for product JB 50 and $440,000 for product JB 60, and administrative expenses of $420,000 for product JB 50 and $380,000 for product JB 60. Income taxes are expected to be 30%.
Instructions
Prepare the following budgets for the year. Show data for each product. Do not prepare quarterly budgets.
(a) Sales
(b) Production
(c) Direct materials
(d) Direct labour
(e) Income statement

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Product JB 50 Product JB 60 Sales budget Anticipated volume in units Unit selling price Production budget Desired ending finished goods units Beginning finished goods units 300,000 180,000 $20 $30 30,000 20,000 25,000 15,000 Direct materials budget: Direct materials per unit (kilograms) Desired kilograms of ending direct material Beginning kilograms of di Cost per kilogram Direct labour budget: 50,000 40,000 20,000 10,000 rect materials Direct labour time per unit (hours) Direct labour rate per hour 0.5 $12 0.75 $12 Budgeted income statement: $11 $20