PI034A (L02, 3) Greish Inc. is preparing its annual budgets for the year ending December 31, 2020. Accounting assistants have provided the following data: Bopot prepare the manufacturing overilau Prepare sales, production, direct materials, direcr labour, and income ass Product LN 40 Product LN 35 statement budgers. 240,000 $35 400,000 $30 Sales budget Expected volume in units Unit selling price Production budget Desired ending finished good units Beginning finished goods units 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 Direct labour time per unit (hours) Direct labour rate per hour 20,000 30,000 20,000 15,000 3 2 15,000 50,000 10,000 $3 40,000 $2 0.5 0.7 $12 $12 Budgeted income statement Total unit cost $11 $20 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expenses badget. The latter shows selling expenses of $850,000 for product LN 35 and $390,000 for product LN 40, and administrative expenses of $520,000 for product LN 35 and $180,000 for product LN 40. Income taxes are expected to be 30 %. a. Total sales: $20,400,000 b. Required production units: LN 35, 410,000 c. Total cost of direct materials purchases: $3,880,000 d. Total direct labour cost: $4,518,000 e. Net income: $6,482,000 Instructions Prepare the following budgets for the year. Show data for each product. Quarterly budgets should not be prepared. a. Sales d. Direct labour b. Production e. Income statement c. Direct materials (Note: Income taxes are not allocated to the products.)