*** I just need help with D: The Direct Labor Budget and E: Budgeted Income Statement
Problem 21-2A (Part Level Submission) Deleon Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown below. Product JB 50 Product JB 60 401,600 $21 203,100 $27 27,100 17,000 13,300 31,100 2 3 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 33,300 41,800 17,600 12,000 $3 $3 0.4 0.6 $11 $11 $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 $662,000 for product JB 50 and $365,000 for product JB 60, and administrative expenses of $544,000 for product JB 50 and $345,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%. (a) Your answer is correct. Prepare the sales budget for the year. DELEON INC. Sales Budget For the Year Ending December 31, 2017 JB 50 JB 60 Total Expected unit sales 401600 203100 Unit selling price 21 27 $ Total sales 8433600 5483700 13917300 $ $ (b) Your answer is correct. Prepare the production budget for the year. DELEON INC. Production Budget For the Year Ending December 31, 2017 JB 50 JB 60 Expected Unit Sales 401600 203100 Add v Desired Ending Finished Goods Units 27100 17000 Total Required Units 428700 220100 Less V Beginning Finished Goods Units 31100 13300 Required Production Units 397600 206800 (c) Your answer is correct. Prepare the direct materials budget for the year. DELEON INC. Direct Materials Budget For the Year Ending December 31, 2017 JB 50 JB 60 Total Units to be produced 397600 206800 Direct Materials per Unit 2 3 Total Pounds Needed for Production 795200 620400 Add Desired Ending Direct Materials 33300 17600 Total Materials Required 828500 638000 Less Beginning Direct Materials 41800 12000 Direct Materials Purchases 786700 626000 Cost per Pound 3.00 3.00 $1 Total Cost of Direct Materials Purchases 2360100 1878000 4238100 $ (d) Your answer is partially correct. Try again. Prepare the direct labor budget for the year. (Round Direct labor time per unit answers to 1 decimal place, e.g. 52.7.) DELEON INC. Direct Labor Budget For the Year Ending December 31, 2017 JB 50 JB 60 Total Detta Citta x DELEON INC. Budgeted Income Statement For the Year Ending December 31, 2017 JB 50 JB 60 Total Sales Cost of Goods Sold Gross Profit Selling Expenses Administrative Expenses Total Operating Expenses Income before Income Taxes + Income Tax Expense Net Income / (Loss)
