P23-2A Deleon Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown below. Product JB 50 Product JB 60 Sales budget: Anticipated volume in units 400,000 200,000 Unit selling price $20 $25 Production budget: Desired ending finished goods units 30,000 15,000 Beginning finished goods units 25,000 10,000 Direct materials budget: Direct materials per unit (pounds) 2 3 Desired ending direct materials pounds 30,000 10,000 Beginning direct materials pounds 40,000 15,000 Cost per pound $3 $4 Direct labor budget: Direct labor time per unit 0.4 0.6 Direct labor rate per hour $12 $12 Budgeted income statement: Total unit cost $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 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 (c) Direct materials, not allocated to the products). P23-4A Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2017 are as follows. Sales Direct materials purchases Direct labor Manufacturing overhead Selling and administrative expenses January $360,000 120,000 90,000 70,000 79,000 February $400,000 125,000 100,000 75,000 85,000 All sales are on account. Collections are expected to be 50% in the month of sale, 30% in the first month following the sale, and 20% in the second month following the sale. Sixty percent (60%) of direct materials purchases are paid in cash in the month of purchase, and the balance due is paid in the month following the purchase. All other items above are paid in the month incurred except for selling and administrative expenses that include $1,000 of depreciation per month. Other data: 1. Credit sales: November 2016, $250,000; December 2016, $320,000. 2. Purchases of direct materials: December 2016, $100,000. 3. Other receipts: January-collection of December 31, 2016, notes receivable $15,000; February proceeds from sale of securities $6,000. 4. Other disbursements: February-payment of $6,000 cash dividend. The company's cash balance on January 1, 2017, is expected to be $60,000. The company wants to maintain a minimum cash balance of $50,000. Instructions (a) Prepare schedules for (1) expected collections from customers and (2) expected pay- ments for direct materials purchases for January and February (b) Prepare a cash budget for January and February in columnar form