*Problem 13-2 (Part Level Submission) Riverbed Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants fumish the data shown below. Product JB 50 Product JB 60 Sales budget: Anticipated volume in units 02,500 201,200 Unit selling price $27 $27 Production budget: Desired ending finished goods units 27,700 19,300 Beginning finished goods units 31,800 11,100 Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds $4,700 18,80 Beginning direct materials pounds 14.900 14,700 Cost per pound $3 $3 Direct labor budget: Direct labor time per unit 0.3 0.6 Direct labor rate per hour $12 $12 Budgeted income statement: Total unit cost $13 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $662,000 for product JB 50 and $363,000 for product JB 60, and administrative expenses of $544,000 for product JB 50 and $343,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%. *(a) Your answer is correct. Prepare the sales budget for the year. IVERBED INC. Sales Budget For the Year Ending December 31, 2017 JB 50 JB 60 Total Expected unit sales 1402,500 (201,200 Unit selling price 5122 Total sales $18,855,000 $15,432,400 $ 14,287,400 Attempts: 1 of 10 used *(b) Your answer is correct. Prepare the production budget for the year. RIVERBED ING Production Budge For the Year Ending December 31, 2017 JB 50 JB 60 Expected Unit Sales 1402,500 201,200 Add: Desired Ending Finished Goods Units 127,700 19,300 Total Required Units 430,200 220,500 Less). (Beginning Finished Goods Units (31,800 11,100 Required Production Units (398,400 209,400 Attempts: 1 of 10 used *(c) Your answer is correct. Prepare the direct materials budget for the year. RIVERBED INC. Direct Materials Budget For the Year Ending December 31, 2017 JB 50 JB 60 Total Units to be Produced 1398,400 1209,400 Direct Materials per Unit Total Pounds Needed for Production (398,400) 628,200 Add: Desired Ending Direct Materials 134,700 18,80 Total Materials Require 1433,100 164700 Less: (Beginning Direct Materials 44,900 14,70 "Direct Materials Purchases 1388,200 1632,300 Cost per Pound (Total Cost of Direct Materials Purchases) $1, 164,600 $1,896,900) $13,061,500 Attempts: 2 of 10 used *(d) Your answer is correct. 52.7.) Prepare the direct labor budget for the year. (Round Direct labor time per unit answers to 1 decimal place, e.g. RIVERBED INC. Direct Labor Budget For the Year Ending December 31, 2017 JB 50 JB 60 Total Units to be Produced 1398,400 (209,400 Direct Labor Time per Unit 10.3 10.6 Total Required Direct Labor Hours (1 19,520 125,640 Direct Labor Cost per Hour $ 12 Total Direct Labor Cost $1,434,240 $1,507,680 $12,941,920 Attempts: 1 of 10 used *(e) Your answer is partially correct. Try again. Prepare the budgeted multiple-step income statement for the year. (Note: income taxes are not allocated to the products). RIVERBED INC. Budgeted Income Statement For the Year Ending December 31, 2017 JB SO JB 60 Total Sales 18,855,000 $15,432,400 $ 14,287,400 Cost of Goods Sold Gross Profit TOperating Expenses) Selling Expenses Administrative Expenses Total Operating Expenses Income from Operations 10000 0000 Interest Expense IIncome before Income Taxes Income Tax Expense Net Income / (Loss)
