P10.46B

Prepare sales, production, direct materials, direct labour, and income statement budgets..

(LO 2, 3) Quinn Ltd. is preparing its annual budgets for the year ending December 31, 2020. Accounting assistants provide the following data:

An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expenses budget. The latter shows selling expenses of $560,000 for product JB 50 and $440,000 for product JB 60, and administrative expenses of $420,000 for product JB 50 and $380,000 for product JB 60. Income taxes are expected to be 30%.

Instructions

Prepare the following budgets for the year. Show data for each product. Do not prepare quarterly budgets.

a. Sales

Total sales: $11,400,000

b. Production

Required production units: JB 50, 310,000

c. Direct materials

d. Direct labour

e. Income statement

(Note: Income taxes are not allocated to the products.)

Hi, please solve all the parts a-e with the working

Product JB 50 Product JB 60 Sales budget Anticipated volume in units Unit selling price Production budget Desired ending finished goods units Beginning finished goods units 300,000 180,000 $20 $30 30,000 25,000 20,000 15,000 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 50,000 40,000 $2 20,000 10,000 $3 Direct labour time per unit (hours) Direct labour rate per hour 0.5 0.75 $12 $12 Budgeted income statement Total unit cost $11 $20