Greish Inc. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants have provided 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 $850,000 for product LN 35 and $390,000 for product LN 40, and administrative expenses of $520,000 for product LN 35 and $180,000 for product LN 40. 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 

d. Direct labour

e. Income statement

Transcribed Image Text:

Sales budget Expected 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 kilograms of ending direct materials Beginning kilograms of direct materials Cost per kilogram Direct labour budget Direct labour time per unit (hours) Direct labour rate per hour Budgeted income statement Total unit cost Product LN 35 400,000 $30 30,000 20,000 2 50,000 40,000 $2 0.5 $12 $11 Product LN 40 240,000 $35 20,000 15,000 3 15,000 10,000 $3 0.7 $12 $20