P22.2A (LO 2, 3), AP Deleon Inc. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants furnish the data shown below. Prepare sales, production, direct materials, direct labor, and income statement budgets. Product JB 50 Product JB 60 Sales budget: Anticipated volume in units Unit selling price 400,000 $20 200,000 $25 Product JB 50 Product JB 60 30,000 25,000 15,000 10,000 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 2 30,000 40,000 $3 3 10,000 15,000 $4 0.4 0.6 $12 $12 $13 $20 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $560,000 for product JB 50 and $360,000 for product JB 60, and administrative expenses of $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 a. Total sales $13,000,000 b. Required production units: JB 50, 405,000 JB 60,205,000 c. Total cost of direct materials purchases $4,840,000 d. Total direct labor cost $3,420,000 e. Net income $1,295,000 Prepare the following budgets for the year. Show data for each product. Quarterly budgets should not be prepared. a. Sales d. Direct labor. b. Production. e. Multiple-step income statement (Note: income taxes are not allocated c. Direct materials. to the products)