Coronado Inc. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants furnish the data shown below. Product JB 50 Product JB 60 Sales budget: Anticipated volume in units 472,000 236,000 Unit selling price $30 $35 Production budget: Desired ending finished goods units 35,400 17,700 Beginning finished goods units 29,500 11,800 Direct materials budget: Direct materials per unit (pounds) 3 Desired ending direct materials pounds 35,400 11,800 Beginning direct materials pounds 47,200 17,700 Cost per pound $3 $4 Direct labor budget: Direct labor time per unit 0.4 0.6 Direct labor rate per hour $12 $12 Budgeted income statement: Total unit cost $13 $20 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $660,800 for product JB 50 and $424,800 for product JB 60, and administrative expenses of $637,200 for product JB 50 and $401,200 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 20%. (a) Your answer is correct. Prepare the sales budget for the year. CORONADO INC. Sales Budget For the Year Ending December 31, 2022 JB 50 JB 60 Total Expected Unit Sales 472000 236000 Unit Selling Price $ 30 $ 35 Total Sales $ 14,160,000 8,260.000 $ 22,420,000 e Textbook and Media Attempts: 2 of 3 used (b) Your answer is correct. Prepare the production budget for the year. CORONADO INC. Production Budget For the Year Ending December 31, 2022 JB 50 JB 60 Expected Unit Sales 472000 236000 Add Desired Ending Finished Goods Units 35400 17700 Total Required Units 507400 253700 Less : Beginning Finished Goods Units 29500 11800 Required Production Units 477900 241900 (c) Your Answer Correct Answer Your answer is partially correct. Prepare the direct materials budget for the year. CORONADO INC. Direct Materials Budget For the Year Ending December 31, 2022 JB 50 JB 60 Units to be produced 477900 241900 Direct Materials per Unit 2 3 Total Pounds Needed for Production 955800 725700 Add Desired Ending Direct Materials (Pounds) 35400 11800 Total Materials Required 991200 737500 Less : Beginning Direct Materials (Pounds) 47200 17700 i Total Materials Required 944000 719800 Cost per Pound $ 3 $ Total Cost of Direct Materials Purchases 2832000 $ 2879200 e Textbook and Media Solution Attempts: 3 of 3 used (d) Your answer is correct. Prepare the direct labor budget for the year. (Round Direct labor time per unit answers to 1 decimal place, e.g. 52.5.) CORONADO INC. Direct Labor Budget For the Year Ending December 31, 2022 JB 50 JB 60 Tota Units to be Produced 477900 241900 Direct Labor Time (Hours) per Unit .4 .6 Total Required Direct Labor Hours 191160 145140 Direct Labor Cost per Hour $ 12 $ 12 Total Direct Labor Cost $ $2,293,920 $ $1,741,680 $ e Textbook and Media Attempts: 1 of 3 used Prepare the budegeted multiple-step income statement for the year. (Note: income taxes are not allocated to the products). CORONADO INC. Budgeted Income Statement For the Year Ending December 31, 2022 JB 50 JB 60 Total $ $ $ > > $ $ > $
