Need help with the last part
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 Product JB 60 JB 50 Sales budget: Anticipated volume in units 402,500 202,500 Unit selling price $23 $28 Production budget: 16,000 Desired ending finished goods units 30,000 Beginning finished goods units 33,500 13,800 Direct materials budget: Direct materials per unit (pounds) 1 3 Desired ending direct materials pounds 32,700 18,900 Beginning direct materials pounds 14,200 43,300 Cost per pound $3 $4 Direct labor budget: Direct labor time per unit 0.3 0.6 Direct labor rate per hour $12 $12 Budgeted income statement: Total unit cost $12 $21 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $661,000 for product JB 50 and $363,000 for product JB 60, and administrative expenses of $545,000 for product JB 50 and $343,000 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 60 Total JB 50 Expected unit sales 402,500 202,500 Unit selling price 23 28 Total sales 9,257,500 14,927,500 5,670,000 Click if you would like to Show Work for this question: Open Show Work (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 402,500 202,500 Add Desired Ending Finished Goods Units 30,000 16,000 Total Required Units 432,500 218,500 Less Beginning Finished Goods Units 33,500 13,800 Required Production Units 399,000 204,700 Click if you would like to Show Work for this question: Open Show Work YOur answer is correct Prepare the direct materials budget for the year. DELEON INC. Direct Materials Budget For the Year Ending December 31, 2017 J 60 Total JB 50 Units to be Produced 204,700 399,000 Direct Materials per Unit 1 3 Total Pounds Needed for Production 399,000 614,100 Add Desired Ending Direct Materials 32,700 18,900 Total Materials Required 431,700 633,000 Beginning Direct Materials Less 43,300 14,200 Direct Materials Purchases 388,400 618,800 3 Cost per Pound 1,165,200 2,475,200 3,640,400 Total Cost of Direct Materials Purchases Click if you would like to Show Work for this guestion: Open Show Work (d) Your answer is correct 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 Total JB 50 JB 60 Units to be Produced 399,000 204,700 Direct Labor Time per Unit 0.3 0.6 Total Required Direct Labor Hours 119,700 122,820 Direct Labor Cost per Hour 12 12 6,400 1,47 840 2, Total Direct Labor Cost Click if you would like to Show Work for this question: Open Show Work DELEON INC. Budgeted Income Statement For the Year Ending December 31, 2017 J 60 JB 50 Total Sales 9,257,500 5,670,000 14,927,500 $ Cost of Goods Sold Gross Profit Operating Expenses 363,000 Selling Expenses 1,024,000 661,000 888,000 Administrative Expenses 545,000 343,000 706,000 Total Operating Expenses 1,206,000 1,912,000 Income from Operations $ Interest Expense Income before Income Taxes Income Tax Expense Net Income / (Loss) tA
