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Problem 21-2A (Part Level Submission) Deleon Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown

Problem 21-2A (Part Level Submission)

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 402,300 203,700
Unit selling price $23 $27
Production budget:
Desired ending finished goods units 28,100 18,100
Beginning finished goods units 34,100 12,500
Direct materials budget:
Direct materials per unit (pounds) 1 3
Desired ending direct materials pounds 34,000 18,500
Beginning direct materials pounds 44,600 13,400
Cost per pound $3 $3
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 $14 $22

An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $661,000 for product JB 50 and $361,000 for product JB 60, and administrative expenses of $545,000 for product JB 50 and $344,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%.

Prepare the budgeted multiple-step income statement for the year. (Note: income taxes are not allocated to the products).

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