Quinn Inc. is preparing its annual budgets for the year ending December 31, 2012. 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?

Transcribed Image Text:

Product TB 50 Product TB 60 Sales budget Anticipated volume in units 300,000 180,000 Unit selling price 20 $30 Production budget 25,000 15,000 Desired ending finished goods units 30,000 20,000 Beginning finished goods units Direct materials budget: Direct materials per unit (kilograms) Desired kilograms of ending direct materials Beginning kilograms of direct maisxials Cost per kilogram Direct labour budget: 50,000 40,000 $2 20,000 10,000 $3 0.75 Direct labour time per unit (hours) Direct labour rate per hour 0.5 $12 $12 Budgeted income statement: Total unit cost $11 $20