Deleon Inc. is preparing ibang for the year ending December 31, 2020 Accounting assistant for the data shown below Product Product NL50 NL.0 Sale bed Anticipated volume in Que 2,000 300 Our2 1.00 DO Owner 2.300 Ouane 4 Unit selling price 595 of the man's expected Product budget Desired ending finished 2 poods cache Bering finished goods 200 $15000 57000 > Coret per posand Costerd 52 of the same que production requirements Direct material budget Direat mairah per uri (pound) 1 Item(Y) 4 Desired ending direct 10 ils poule Beginning direct materials pecade Unte 200 Cost per point $4 Direct laborbud Direct labore per il ? Direct laborate per how is 150 SI5 30. Manufacturing Overhead Variable whead costs per direct behou Indirect materials SOS Indirect labor SIS Utilities Maintenance 50.25 Fired overheadquarter Superwyl Depreciation $2.800 2.0 is related to buildings and $1.500 is attributablement Insurance $9.000 Mama 55,700 Selling and Administrative Espense Vable costs per dollar of sale Delivery expert Sales com 2799 Fixed overhead costo per quarter Sales salaries $15.000 Office salaries 57.500 Depreciation $1.000 5.00 sd buildings and 5600 minutable pont Inne Advertising 55.000 Repair Experte All me on account. Collection are expected to be in the meeste sale the first month following the lead in the commentfolkening the le Sixty percent of direct material parches are paid is cash in the mouth of purchase, and the balance der is pond in the menthe following the procese All other items above read the incurred Other data L. Accounts Receivable: December 2019,529,00 we expected to be collected in 2000 the first quaner 517.406, second quarter 51.00 2 Accounts Payable December 2016. 510,30, we expected to be collected in the first quarter 2000 3.Other receipts. Jam proceeds from sale of securities $2.000 4. Other disbursements Apeil payment of $20,000 for Equipment, JulyNetes payable of 59.800 were redeemed the face value for each Search are estimated to be $8,000. Paid in the quarterly talent started at the end of quarter 2. 6. Delon ses the FIR res TIT Insurance $1.500 Advertising $5,000 Repaire Expense 5900 All sales are on account. Collections are expected to be 50% in the month of sale,30% in the first month following the sale and 2010 in the second meth following the sale Sixty percent (60%) of direct materials purchases are paid in case in the month of purch, and the balance des paid in the month following the past All other items above we paid in the meth curred Other data 1. Accounts Receivable: December 2019,529,000, we expected to be collected in 2020, the first quarter 517,400, and second quarter S11.500 2. Accounts Payable: December 2016 SION, we expected to be collected in the first quarter 2020 2.Other receipts: January proceeds from sale of securities $2,000. 4 Other disbursements: April wyment of $20,000 for Equipment, July.Notes payable of 59.800 were redeemed as the face value for the 5. Income taxes are estimated to be 59.000. Paid in three equal quarterly installments started at the end of quarter 2. Delcomes the FIFO inventory method for evaluating all endings inventories 7. The company's cash balance on Jury 1, 2030. is expected to be $180,000. The company wants to maintain a minimum cash balance of $85.000 Loans and interest are repaid in the earliest quarter in which there is sufficient cash (interest expense: 5560) Deleon Inc. balance shees at December 31, 2019, is presented below. Deleon Inc Balance Sheet December 31, 2019 Aws Current assets Cash 180,000 Accounts receivable Marketable securities 2.000 Finished goods inventory Raw Material inventory 1.100 26.100 Tocal current 237.100 Property, plant, and equipment Land 150,000 Buildings Les Accutulated deprodation - 57.500 172,500 Equipment 160,000 Less: Accumulated depredation 90,000 120,000 Total property, plast, and equipment 442.300 Total acts Liabilities and Stockholders' Equity Liabilities Accounts payable 10.800 Notes payable 9800 Tocal liabilities Stockholders' equity Commen stock 500,000 Retained earnings 159.000 Total stockholders' equity Total abilities and stockholders 679,600 equity Instruction Tecpare the following budgets for the yene Show data for each product Quarterly budgets should be prepared a. Sales Production c. Direct materials Direct lobor e Manufacturing overhead 1. Selling and administrative expense Multiple-stop budgeted income statement schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases iCashbudget 12 Abe 1 a. = E Case Study (1) Deleon Inc. is preparing its annual budgets for the year ending December 31, 2020 Accounting assistants furnish the data shown below Product Produc NL 50 t NL 60 Sales budget: Anticipated volume in units Quarter 1 Quarter 2 Quarter 3 Quarter 4 Unit selling price Production budget: Desired ending finished goods each quarter Beginning finished goods Units Cost 2,000 1,800 2,200 1,500 $95 500 800 400 600 $60 20% 20% of the same quarter's expected sales units 300 $18000 200 $7000 3 4 10% 2 3 10% Cost per pound $3 Cost per pound $2 of the same quarter's production requirements Direct materials budget: Direct materials per unit (pounds) Item Item Desired ending direct materials pounds Beginning direct materials pounds Units 200 150 Cost per pound $4 $2 Direct labor budget: Diedi imbottime per unit 2 Dwed labot rate per hour $15 Manufacturing Overhead Variatio averhead costs per direct labot hour Indirect materials $05 Indirect labor $1.5 $0.75 Maintenance $0.25 Fixed overhead costs per quarter SANOVA S2000 1 $15 Utilos ab a, da E Two Utilities $0.75 Maintenance $0.25 Fixed overhead costs per quarter Supervisory salaries $20,000 Depreciation $3,800 $2,300 is related to buildings and $1,500 is attributable to equipment Insuranc $9,000 e Maintenance $5,700 Selling and Administrative Expense Variable costs per dollar of sales Delivery expense 0.75% Sales commissions 450% Utilities 275% Fixed overhead costs per quarter Sales salanes $15.000 Othce salarios $7,500 Depreciation $1,000 $600 is related to buildings and $400 is attributable to equipment Insurance $1,500 Advertising $5,000 Repete Expense $900 All sales are on account Collections are expected to be 50% in the month of sale,30% in the first month following the sale, and 20% in the second month following the sale Saty percent (60%) of direct materials purchases are paid in cash in the month of purchase, and the balance due is paid in the month following the purchase. Acer soms above are paid in the month incurred Other data: 1. Accounts Receivable December 2019, $29,000, are expected to be collected in 2020, the first quarter 517 400, and second quarter $11,600 % 00 English (USA) Boga EEEEEEE 2020, the first quarter S17,400, and second quarter $11,600 2 Accounts Payable: December 2016, $10,800, are expected to be collected in the first quarter 2020 3. Other receipts: January-proceeds from sale of securities $2,000. 4. Other disbursements: Apnl payment of $20,000 for Equipment, July.Notes payable of $9,800 were redeemed at their face value for cash 5. Income taxes are estimated to be $9,000. Paid in three equal quarterly installments started at the end of quarter 2 6. Deleon uses the FIFO inventory method for evaluating all endings inventories. 7. The company's cash balance on January 1, 2020, is expected to be $180,000. The company wants to maintain a minimum cash balance of $85,000 8. Loans and interest are repaid in the earliest quarter in which there is sufficient cash (interest expense: $560) Deleon Inc. balance sheet at December 31, 2019, is presented below. Deleon Inc. Balance Sheet December 31, 2019 Assets Current assets Cash Accounts receivable Marketable securities Finished goods inventory Raw Material inventory Total current assets 180,000 29,000 2,000 25,000 1,100 26,100 237,10 0 150,000 Property, plant, and equipment Land Buildings 230,000 Less Accumulated depredation -57 500 % 00 172,500 ton English (USA) $1 12 EE IIII 14 19 lil lil a & a Total current assets 237,10 0 Property, plant, and equipment Land Buildings Less. Accumulated depredation Equipment Less Accumulated depredation Total property, plant, and equipment 150,000 230,000 57,500 172,500 160,000 40,000 120,000 442,50 0 679,60 0 Total assets 10,800 9,800 Liabilities and Stockholders' Equity Liabilities Accounts payable Notes payable Total liabilities Stockholders' equity Common stock Retained earnings Total stockholders' equity 20,600 500,000 159,000 Total liabilities and stockholders equity 659,00 0 679,60 0 Instructions Prepare the following budgets for the year Show data for each product Quarterly budgets should be prepared a Sales b. Production c. Direct materials d. Direct labor e Manufacturing overhead 1 Selling and administrative expense g Multiple step budgeted income statement h schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases Cash budget % 00 English (USA) Deleon Inc. is preparing ibang for the year ending December 31, 2020 Accounting assistant for the data shown below Product Product NL50 NL.0 Sale bed Anticipated volume in Que 2,000 300 Our2 1.00 DO Owner 2.300 Ouane 4 Unit selling price 595 of the man's expected Product budget Desired ending finished 2 poods cache Bering finished goods 200 $15000 57000 > Coret per posand Costerd 52 of the same que production requirements Direct material budget Direat mairah per uri (pound) 1 Item(Y) 4 Desired ending direct 10 ils poule Beginning direct materials pecade Unte 200 Cost per point $4 Direct laborbud Direct labore per il ? Direct laborate per how is 150 SI5 30. Manufacturing Overhead Variable whead costs per direct behou Indirect materials SOS Indirect labor SIS Utilities Maintenance 50.25 Fired overheadquarter Superwyl Depreciation $2.800 2.0 is related to buildings and $1.500 is attributablement Insurance $9.000 Mama 55,700 Selling and Administrative Espense Vable costs per dollar of sale Delivery expert Sales com 2799 Fixed overhead costo per quarter Sales salaries $15.000 Office salaries 57.500 Depreciation $1.000 5.00 sd buildings and 5600 minutable pont Inne Advertising 55.000 Repair Experte All me on account. Collection are expected to be in the meeste sale the first month following the lead in the commentfolkening the le Sixty percent of direct material parches are paid is cash in the mouth of purchase, and the balance der is pond in the menthe following the procese All other items above read the incurred Other data L. Accounts Receivable: December 2019,529,00 we expected to be collected in 2000 the first quaner 517.406, second quarter 51.00 2 Accounts Payable December 2016. 510,30, we expected to be collected in the first quarter 2000 3.Other receipts. Jam proceeds from sale of securities $2.000 4. Other disbursements Apeil payment of $20,000 for Equipment, JulyNetes payable of 59.800 were redeemed the face value for each Search are estimated to be $8,000. Paid in the quarterly talent started at the end of quarter 2. 6. Delon ses the FIR res TIT Insurance $1.500 Advertising $5,000 Repaire Expense 5900 All sales are on account. Collections are expected to be 50% in the month of sale,30% in the first month following the sale and 2010 in the second meth following the sale Sixty percent (60%) of direct materials purchases are paid in case in the month of purch, and the balance des paid in the month following the past All other items above we paid in the meth curred Other data 1. Accounts Receivable: December 2019,529,000, we expected to be collected in 2020, the first quarter 517,400, and second quarter S11.500 2. Accounts Payable: December 2016 SION, we expected to be collected in the first quarter 2020 2.Other receipts: January proceeds from sale of securities $2,000. 4 Other disbursements: April wyment of $20,000 for Equipment, July.Notes payable of 59.800 were redeemed as the face value for the 5. Income taxes are estimated to be 59.000. Paid in three equal quarterly installments started at the end of quarter 2. Delcomes the FIFO inventory method for evaluating all endings inventories 7. The company's cash balance on Jury 1, 2030. is expected to be $180,000. The company wants to maintain a minimum cash balance of $85.000 Loans and interest are repaid in the earliest quarter in which there is sufficient cash (interest expense: 5560) Deleon Inc. balance shees at December 31, 2019, is presented below. Deleon Inc Balance Sheet December 31, 2019 Aws Current assets Cash 180,000 Accounts receivable Marketable securities 2.000 Finished goods inventory Raw Material inventory 1.100 26.100 Tocal current 237.100 Property, plant, and equipment Land 150,000 Buildings Les Accutulated deprodation - 57.500 172,500 Equipment 160,000 Less: Accumulated depredation 90,000 120,000 Total property, plast, and equipment 442.300 Total acts Liabilities and Stockholders' Equity Liabilities Accounts payable 10.800 Notes payable 9800 Tocal liabilities Stockholders' equity Commen stock 500,000 Retained earnings 159.000 Total stockholders' equity Total abilities and stockholders 679,600 equity Instruction Tecpare the following budgets for the yene Show data for each product Quarterly budgets should be prepared a. Sales Production c. Direct materials Direct lobor e Manufacturing overhead 1. Selling and administrative expense Multiple-stop budgeted income statement schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases iCashbudget 12 Abe 1 a. = E Case Study (1) Deleon Inc. is preparing its annual budgets for the year ending December 31, 2020 Accounting assistants furnish the data shown below Product Produc NL 50 t NL 60 Sales budget: Anticipated volume in units Quarter 1 Quarter 2 Quarter 3 Quarter 4 Unit selling price Production budget: Desired ending finished goods each quarter Beginning finished goods Units Cost 2,000 1,800 2,200 1,500 $95 500 800 400 600 $60 20% 20% of the same quarter's expected sales units 300 $18000 200 $7000 3 4 10% 2 3 10% Cost per pound $3 Cost per pound $2 of the same quarter's production requirements Direct materials budget: Direct materials per unit (pounds) Item Item Desired ending direct materials pounds Beginning direct materials pounds Units 200 150 Cost per pound $4 $2 Direct labor budget: Diedi imbottime per unit 2 Dwed labot rate per hour $15 Manufacturing Overhead Variatio averhead costs per direct labot hour Indirect materials $05 Indirect labor $1.5 $0.75 Maintenance $0.25 Fixed overhead costs per quarter SANOVA S2000 1 $15 Utilos ab a, da E Two Utilities $0.75 Maintenance $0.25 Fixed overhead costs per quarter Supervisory salaries $20,000 Depreciation $3,800 $2,300 is related to buildings and $1,500 is attributable to equipment Insuranc $9,000 e Maintenance $5,700 Selling and Administrative Expense Variable costs per dollar of sales Delivery expense 0.75% Sales commissions 450% Utilities 275% Fixed overhead costs per quarter Sales salanes $15.000 Othce salarios $7,500 Depreciation $1,000 $600 is related to buildings and $400 is attributable to equipment Insurance $1,500 Advertising $5,000 Repete Expense $900 All sales are on account Collections are expected to be 50% in the month of sale,30% in the first month following the sale, and 20% in the second month following the sale Saty percent (60%) of direct materials purchases are paid in cash in the month of purchase, and the balance due is paid in the month following the purchase. Acer soms above are paid in the month incurred Other data: 1. Accounts Receivable December 2019, $29,000, are expected to be collected in 2020, the first quarter 517 400, and second quarter $11,600 % 00 English (USA) Boga EEEEEEE 2020, the first quarter S17,400, and second quarter $11,600 2 Accounts Payable: December 2016, $10,800, are expected to be collected in the first quarter 2020 3. Other receipts: January-proceeds from sale of securities $2,000. 4. Other disbursements: Apnl payment of $20,000 for Equipment, July.Notes payable of $9,800 were redeemed at their face value for cash 5. Income taxes are estimated to be $9,000. Paid in three equal quarterly installments started at the end of quarter 2 6. Deleon uses the FIFO inventory method for evaluating all endings inventories. 7. The company's cash balance on January 1, 2020, is expected to be $180,000. The company wants to maintain a minimum cash balance of $85,000 8. Loans and interest are repaid in the earliest quarter in which there is sufficient cash (interest expense: $560) Deleon Inc. balance sheet at December 31, 2019, is presented below. Deleon Inc. Balance Sheet December 31, 2019 Assets Current assets Cash Accounts receivable Marketable securities Finished goods inventory Raw Material inventory Total current assets 180,000 29,000 2,000 25,000 1,100 26,100 237,10 0 150,000 Property, plant, and equipment Land Buildings 230,000 Less Accumulated depredation -57 500 % 00 172,500 ton English (USA) $1 12 EE IIII 14 19 lil lil a & a Total current assets 237,10 0 Property, plant, and equipment Land Buildings Less. Accumulated depredation Equipment Less Accumulated depredation Total property, plant, and equipment 150,000 230,000 57,500 172,500 160,000 40,000 120,000 442,50 0 679,60 0 Total assets 10,800 9,800 Liabilities and Stockholders' Equity Liabilities Accounts payable Notes payable Total liabilities Stockholders' equity Common stock Retained earnings Total stockholders' equity 20,600 500,000 159,000 Total liabilities and stockholders equity 659,00 0 679,60 0 Instructions Prepare the following budgets for the year Show data for each product Quarterly budgets should be prepared a Sales b. Production c. Direct materials d. Direct labor e Manufacturing overhead 1 Selling and administrative expense g Multiple step budgeted income statement h schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases Cash budget % 00 English (USA)