P21-2A7 Deleon Inc. is preparing its annual budgets for the year ending December 31, Prepare sales, production, direct materials, direct labor and income statensent budgets. L0 2,31, AP unting assistants furnish the data shown below. Product JB 50 Product JB 60 Sales budget: Anticipated volume in units Unit selling price 200,000 $25 400,000 $20 Production budget: Desired ending finished goods units Beginning finished goods units 30,000 25,000 15,000 10,000 Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds Cost per pound 30,000 40,000 $3 10,000 15,000 $4 Direct labor budget: Direct labor time per unit Direct labor rate per hour 0.4 $12 0.6 $12 Budgeted income statement: Total unit cost $20 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of (a) Total sales $13,000,000 $560,000 for product JB 50 and $360,000 for product JB 60, and administrative expenses of b) Required production $540,000 for product JB 50 and $340,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%. Instructions Prepare the following budgets for the year. Show data for each product. Quarterly budgets should not be prepared. (a) Sales. (b) Production. units: JB 50, 405,000 JB 60, 205,000 (c) Total cost of direct materials purchases $4,840,000 (d) Direct labor (e) Multiple-step income statement (Note: income taxes are (d) Total direct labor cost $3,420,000 ej Net income $1,295,000 (c) Direct materials.not allocated to the products)