Question
Deleon Inc. is preparing its annual budgets for the year ending December 31, 2020. Accounting assistants furnish the data shown below. Sales budget: Product
Deleon Inc. is preparing its annual budgets for the year ending December 31, 2020. Accounting assistants furnish the data shown below. Sales budget: Product JB 50 Product JB 60 Anticipated volume in units 402,800 203,900 Unit selling price $23 $28 Production budget: Desired ending finished goods units 27,800 19,000 Beginning finished goods units 34,900 13,600 Direct materials budget: Direct materials per unit (pounds) 2 3 Desired ending direct materials pounds 32,100) 18,500. Beginning direct materials pounds 43,000 14,600 Cost per pound $3 $3 Direct labor budget: Direct labor time per unit 04 0.6 Direct labor rate per hour $12 $12 Budgeted income statement Total unit cost $14 $21 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget The latter shows selling expenses of $661,000 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%
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