Homework Chapter 23 Saud Company is preparing its annual budgets for the year ending December 31, 2018. The managerial accountant furnish the data shown below. Product A Product B 400,000 $15 500,000 $20 15,000 20,000 5,000 10,000 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 (DM+DL+MOH) 6 15,000 20,000 $3 3 20,000 15,000 $4 0.40 $12 0.60 $12 $6 $8 The managerial accountant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling, general and administrative expenses: variable 4% of sales, fixed $80,000 for product A and B. Instructions: 1. Prepare the following budgets for the year. Show data for each product. You do not need to prepare quarterly budgets. a. Sales b. Production c. Direct materials d. Direct labor e. Income statement