Deleon Inc. is preparing its annual budgets for the year ending December 31, 2020. Accounting assistants furnish the data shown below. Product JB 50 Product JB 60 403,700 $23 203,300 $28 27,900 31,600 19,300 12,600 3 Sales budget: Anticipated volume in units Unit selling price Production budget: Desired ending finished goods units Beginning finished goods units Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds Cost per pound Direct labor budget: Direct labor time per unit Direct labor rate per hour Budgeted income statement: Total unit cost 2 33,600 43,200 $3 16,700 14,800 $4 0.3 0.6 $12 $12 $14 $22 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $662,000 for product JB 50 and $365,000 for product JB 60, and administrative expenses of $543,000 for product JB 50 and $342,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%. Your answer is correct. Prepare the sales budget for the year. DELEON INC. Sales Budget For the Year Ending December 31, 2020 JB 50 JB 60 Total > Expected Unit Sales 403700 203300 > Unit Selling Price 23 28 > > Total Sales 9285100 $ 5692400 14977500 $ Prepare the production budget for the year. DELEON INC. Production Budget For the Year Ending December 31, 2020 JB 50 JB 60 Expected Unit Sales 403700 203300 Add Desired Ending Finished Goods Units 27900 19300 Total Required Units 431600 222600 Required Production Units 400000 210000 DELEON INC. Direct Materials Budget For the Year Ending December 31, 2020 JB 50 JB 60 Total Units to be produced 400000 210000 Direct Materials per Unit 3 Total Pounds Needed for Production 800000 630000 Add Desired Ending Direct Materials (Pounds) 33600 16700 [Total Materials Required 833600 646700 Less Beginning Direct Materials (Pounds) 43200 14800 Direct Materials Purchases 790400 631900 Cost per Pound 3 4 $ u Total Cost of Direct Materials Purchases 2371200 2527600 4898800 Prepare the direct labor budget for the year. (Round Direct labor time per unit answers to 1 decimal place, e.g. 52.5.) DELEON INC. Direct Labor Budget For the Year Ending December 31, 2020 JB 50 JB 60 Total Units to be Produced 400000 210000 Direct Labor Time (Hours) per Unit 0.3 Total Required Direct Labor Hours 120000 126000 > Direct Labor Cost per Hour 12 12 Total Direct Labor Cost 1440000 1512000 2952000 Prepare the budegeted multiple-step income statement for the year. (Note: income taxes are not allocated to the products). DELEON INC. Budgeted Income Statement JB 50 JB 60 Total Budgeted Income Statement JB 50 JB 60 Total $ $ +
