Do not prepare the manufactring over P10.34A (LO 2, 3) Greish Inc. is preparing its annual budgets for the year ending December 31, 2020. Accounting assistants have provided the following data: Prepare sales, production, direct materials, direct labour, and income statement budgets. Product LN 40 Product LN 35 Sales budget Expected volume in units Unit selling price Production budget Desired ending finished good units Beginning finished goods units Direct materials budget: Direct materials per unit (kilograms) Desired kilograms of ending direct materials Beginning kilograms of direct materials Cost per kilogram Direct labour budget Direct labour time per unit (hours) Direct labour rate per hour Budgeted income statement Total unit cost 240,000 400,000 $35 $30 20,000 15,000 30,000 20,000 2 15,000 50,000 40,000 $2 10,000 $3 0.5 0.7 $12 $12 $11 $20 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expenses budget. The latter shows selling expenses of $850,000 for product LN 35 and $390,000 for product LN 40, and administrative expenses of $520,000 for product LN 35 and $180,000 for product LN 40. Income taxes are expected to be 30% a. Total sales: $20,400,000 b. Required production units: LN 35, 410,000 Instructions Prepare the following budgets for the year. Show data for each product. Quarterly budgets should not be prepared c. Total cost of direct materials purchases: $3,880,000 d. Total direct labour cost: a. Sales b. Production d. Direct labour $4,518,000 e. Income statement e. Net income: $6,482,000 c. Direct materials (Note: Income taxes are not allocated to the products.)