*****I just need the RED BOXES answered correctly*****

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		404,400		201,000
Unit selling price		$22		$27
Production budget:
Desired ending finished goods units		28,800		17,600
Beginning finished goods units		34,100		13,100
Direct materials budget:
Direct materials per unit (pounds)		1		2
Desired ending direct materials pounds		34,600		16,400
Beginning direct materials pounds		41,100		13,000
Cost per pound		$2		$4
Direct labor budget:
Direct labor time per unit		0.3		0.6
Direct labor rate per hour		$10		$10
Budgeted income statement:
Total unit cost		$13		$22

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 $545,000 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%.

Prepare the budegeted multiple-step income statement for the year. (Note: income taxes are not allocated to the products) DELEON INC. Budgeted Income Statement For the Year Ending December 31, 2020 JB 60 JB 50 Total Sales 5427000 8896800 14323800 i Cost of Goods Sold 5257200 4422000 9679200 Gross Profit 3639600 1005000 4644600 Operating Expenses Selling Expenses 662,000 365,000 1027000 Administrative Expenses 545,000 890000 345,000 Total Operating Expenses 710000 1207000 1917000 $ $ Total Operating Expenses 1752000 1055000 2807000 Interest Expense 150,000 Income before Income Taxes 1687600 Income Tax Expense 506280 Net Income/(Loss) 1181320 +A tA tA LO