Mosman Ltd. is preparing its annual budgets for the year ending December 31, 2020. Accounting assistants furnish the data shown below. (Prices and costs are in Australian dollars.)

An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $560,000 for product JB 50 and $360,000 for product JB 60, and administrative expenses of $540,000 for product JB 50 and $340,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%.

Instructions

Prepare the following budgets for the year. Show data for each product. Quarterly budgets should not be prepared.

a. Sales. 

b. Production.
c. Direct materials. not allocated to the products).

d. Direct labor.

e. Multiple-step income statement (Note: income taxes are

Transcribed Image Text:

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 Direct materials budget: Direct materials per unit (kilograms) Desired ending direct materials kilograms Beginning direct materials kilograms Cost per kilogram Direct labor budget: Direct labor time per unit Direct labor rate per hour Budgeted income statement: Total unit cost 400,000 $20 200,000 $25 15,000 30,000 25,000 10,000 3 30,000 40,000 $3 10,000 15,000 $4 0.6 0.4 $12 $12 $13 $20