Prepare sales, production, direct materials, direct labor, and income statement budgets. P22.2 (LO 2, 3), AP Deleon Inc. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants furnish the following data. 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 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 20%. Instructions Prepare the following budgets for the year. Show data for each product. Quarterly budgets should not be prepared. a. Sales. a. Total sales $13,000,000 b. Production. b. Required production units: JB 50, 405,000 JB 60, 205,000 c. Direct materials. c. Total cost of direct materials purchases $4,840,000 d. Direct labor. d. Total direct labor cost $3,420,000 e. Multiple-step income statement (Note; income taxes are not allocated to the products). e. Net income $1,480,000