Deleon Inc. is preparing its annual budgets for the year ending December 31, 2014. Accounting assistants furnish the data shown below.

		Product JB 50		Product JB 60
Sales budget:
Anticipated volume in units		400,000		200,000
Unit selling price		$20		$25
Production budget:
Desired ending finished goods units		30,000		15,000
Beginning finished goods units		25,000		10,000
Direct materials budget:
Direct materials per unit (pounds)		2		3
Desired ending direct materials pounds		30,000		10,000
Beginning direct materials pounds		40,000		15,000
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 $560,000 for product JB 50 and $360,000 for product JB 60, and administrative expenses of $540,000 for product JB 50 and $340,000 for product JB 60. Income taxes are expected to be 30%.

Prepare the income statement budgets for the year.

JB 50 JB60 Total

Sales

Costs of Goods Sold

Gross Profit

Operating Expenses

Administrative Expenses

Selling Expenses

Total Operatng Expenses

Income Before Income Taxes

Income Tax Expense

Net Income/ (Loss)