Ayayai Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown below.

Product

JB 50

Product

JB 60

Sales budget:Anticipated volume in units 403,200205,000Unit selling price $22 $27 Production budget:Desired ending finished goods units 26,300 16,000Beginning finished goods units 31,200 13,300 Direct materials budget:Direct materials per unit (pounds)22Desired ending direct materials pounds 33,300 17,900Beginning direct materials pounds 43,500 13,100Cost per pound$2 $3 Direct labor budget:Direct labor time per unit 0.40.6Direct labor rate per hour$12 $12 Budgeted income statement:Total unit cost$12 $22

An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $662,000for product JB 50 and $362,000for product JB 60, and administrative expenses of $542,000for product JB 50 and $345,000for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%.

(a)

Prepare the sales budget for the year.

AYAYAIINC.

Sales Budget

For the Quarter Ending December 31, 2017

For the Year Ending December 31, 2017

December 31, 2017

JB 50

JB 60

Total

Expected unit sales

Unit selling price$

$

Total sales$

$

$