Deleon Inc. is preparing its annual budgets for the year ending December 31, 2020. Accounting assistants...

Transcribed Image Text:

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 Sales budget: Anticipated volume in units 403,200 203,400 Unit selling price $22 $28 Production budget: Desired ending finished goods units 26,700 19,700 Beginning finished goods units 32,500 11,400 Direct materials budget: Direct materials per unit (pounds) 2 2 Desired ending direct materials pounds 34,300 19,500 Beginning direct materials pounds 44,300 11,200 Cost per pound $3 $3 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 $21 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $663,000 for product JB 50 and $364,000 for product JB 60, and administrative expenses of $542,000 for product JB 50 and $341,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%. 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 Sales budget: Anticipated volume in units 403,200 203,400 Unit selling price $22 $28 Production budget: Desired ending finished goods units 26,700 19,700 Beginning finished goods units 32,500 11,400 Direct materials budget: Direct materials per unit (pounds) 2 2 Desired ending direct materials pounds 34,300 19,500 Beginning direct materials pounds 44,300 11,200 Cost per pound $3 $3 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 $21 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $663,000 for product JB 50 and $364,000 for product JB 60, and administrative expenses of $542,000 for product JB 50 and $341,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%.