Page of 2 0 - Accounting Principles Homework Problems Chapter 23 1. Hall Inc. is preparing its annual budgets for the year ended October 31, 2020. Staff accountants have accumulated to following relevant information Product A20 Product 340 440,000 $22.00 220,000 $27.50 33.000 27,500 16,500 11,000 Sales budget: Anticipated volume in units Units selling price Production budget: Desired ending finished goods Inventory 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 33.000 44.000 $3.00 11.000 16,500 $4.00 0.6 $12.00 $12.00 $13.00 $20.00 A staff assistant has prepared the manufacturing overhead budget and the selling and administrative expense budget. The selling and administrative expense budget shows selling expenses of $560,000 for product A20 and $360,000 for product 340, and administrative expenses of $540,000 for product A20 and $340,000 for product B40. Income taxes are expected to be 30% of operating income. Instructions a. Prepare the following budgets for the year. Show data for each product. (1) Sales 12) Production (3) Direct materials (4) Direct labor (5) Income statement income taxes are not allocated to each product.) Page