Deleon Inc. is preparing its annual budgets for the year ending December 31, 2020. Accounting assistants furnish the data shown below. ions 5 Support Product JB 50 Product JB 60 Sales budget: Anticipated volume in units 402,300 $23 201,600 $28 Unit selling price Production budget: Desired ending finished goods units 27,300 31,300 19,500 1,800 Beginning finished goods units Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds 22 32,700 19,500 41.500 12,400 $3 Cost per pound Direct labor budget: Direct labor time per unit Direct labor rate per hour Budgeted income statement: Total unit cost 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 $364,000 for product JB 60, and administrative expenses of $544,000 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% 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 402,300 201,600 Unit Selling Price 9817380 Total Sales 9252900 5644800 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 364.000 544,000 Add : Desired Ending Direct Materials 342.000 Total Required Units Less : Beginning Finished Goods Units Required Production Units Prepare the direct materials budget for the year. DELEON INC. Direct Materials Budget JB 50 JB 60 Total Prepare the direct labor budget for the year. (Round Direct labor time per unit answers to 1 decimal place, es. 52.5.) DELEON INC. Direct Labor Budget JB 50 JB 60 Prepare the budegeted multiple-step income statement for the year. (Note: income taxes are not allocated to the products). DELEON INC. Budgeted Income Statement 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 JB 50 Net Income /(Loss) Cost of Goods Sold Operating Expenses Gross Profit Interest Expense Administrative Expenses Income Tax Expense Beginning Inventory Total Operating Expenses Sales Income from Operations Ending Inventory Selling Expenses Purchases Income before Income Taxes Total Materials Required Total Direct Labor Cost Desired Ending Direct Materials (Pounds) Beginning Finished Goods Units Total Pounds Needed for Production Total Required Direct Labor Hours Direct Labor Time per Unit Direct Materials Purchases Desired Ending Finished Goods Units Expected Unit Sales Beginning Direct Materials (Pounds) Units to be produced Total Cost of Direct Materials Purchases Direct Labor Cost per Hour Cost per Pound Total Required Units Direct Materials per Unit Round Direct labor time per unit DELEON INC. Direct Labor Budge JB 50
