0.5 Do not prepare the manufacturing overlede vuu Prepare sales, production, direct P10.34A (LO 2, 3) Greish Inc. is preparing its annual budgets for the year ending December 31, 2020. materials, direct labour, and income Accounting assistants have provided the following data: statement budgets. Product LN 35 Product LN 40 Sales budget Expected volume in units 400,000 240,000 $30 $35 Unit selling price Production budget Desired ending finished good units 30,000 20,000 Beginning finished goods units 20,000 15,000 Direct materials budget: Direct materials per unit (kilograms) Desired kilograms of ending direct materials 50,000 15,000 Beginning kilograms of direct materials 40,000 10,000 Cost per kilogram $2 Direct labour budget Direct labour time per unit (hours) Direct labour rate per hour $12 Budgeted income statement Total unit cost $11 $20 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 a. Total sales: $20,400,000 $180,000 for product LN 40. Income taxes are expected to be 30%. b. Required production units: Instructions LN 35, 410,000 Prepare the following budgets for the year. Show data for each product. Quarterly budgets should not be c. Total cost of direct materials prepared purchases: $3,880,000 d. Total direct labour cost: a. Sales d. Direct labour $4,518,000 b. Production e. Income statement e. Net income: $6,482,000 c. Direct materials (Note: Income taxes are not allocated to the products.) $12