Problem 21-2A (Part Level Submission)

Deleon Inc. is preparing its annual budgets for the year ending December 31, 2014. Accounting assistants furnish the data shown below.

		Product JB 50		Product JB 60
Sales budget:
Anticipated volume in units		402,900		203,500
Unit selling price		$21		$28
Production budget:
Desired ending finished goods units		28,100		18,400
Beginning finished goods units		32,500		15,000
Direct materials budget:
Direct materials per unit (pounds)		1		3
Desired ending direct materials pounds		32,700		19,100
Beginning direct materials pounds		42,200		11,800
Cost per pound		$2		$4
Direct labor budget:
Direct labor time per unit		0.3		0.5
Direct labor rate per hour		$11		$11
Budgeted income statement:
Total unit cost		$13		$21

An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $663,100 for product JB 50 and $361,100 for product JB 60, and administrative expenses of $542,900 for product JB 50 and $343,500 for product JB 60. Income taxes are expected to be 30%.

Prepare the income statement budgets for the year.

DELEON INC. Budgeted Income Statement For the Year Ending December 31, 2014
		JB 50		JB 60		Total
Administrative ExpensesBeginning InventoryCost of Goods SoldEnding InventoryGross ProfitIncome before Income TaxesIncome from OperationsIncome Tax ExpenseNet Income/ (Loss)Operating ExpensesPurchasesSalesSelling ExpensesTotal Operating Expenses		$		$		$
Administrative ExpensesBeginning InventoryCost of Goods SoldEnding InventoryGross ProfitIncome before Income TaxesIncome from OperationsIncome Tax ExpenseNet Income/ (Loss)Operating ExpensesPurchasesSalesSelling ExpensesTotal Operating Expenses
Administrative ExpensesBeginning InventoryCost of Goods SoldEnding InventoryGross ProfitIncome before Income TaxesIncome from OperationsIncome Tax ExpenseNet Income/ (Loss)Operating ExpensesPurchasesSalesSelling ExpensesTotal Operating Expenses
Administrative ExpensesBeginning InventoryCost of Goods SoldEnding InventoryGross ProfitIncome before Income TaxesIncome from OperationsIncome Tax ExpenseNet Income/ (Loss)Operating ExpensesPurchasesSalesSelling ExpensesTotal Operating Expenses
Administrative Expenses Beginning Inventory Cost of Goods Sold Ending Inventory Gross Profit Income before Income Taxes Income from Operations Income Tax Expense Net Income/ (Loss) Operating Expenses Purchases Sales Selling Expenses Total Operating Expenses
Administrative Expenses Beginning Inventory Cost of Goods Sold Ending Inventory Gross Profit Income before Income Taxes Income from Operations Income Tax Expense Net Income/ (Loss) Operating Expenses Purchases Sales Selling Expenses Total Operating Expenses
Administrative Expenses Beginning Inventory Cost of Goods Sold Ending Inventory Gross Profit Income before Income Taxes Income from Operations Income Tax Expense Net Income/ (Loss) Operating Expenses Purchases Sales Selling Expenses Total Operating Expenses
Administrative ExpensesBeginning InventoryCost of Goods SoldEnding InventoryGross ProfitIncome before Income TaxesIncome from OperationsIncome Tax ExpenseNet Income/ (Loss)Operating ExpensesPurchasesSalesSelling ExpensesTotal Operating Expenses		$		$
Administrative ExpensesBeginning InventoryCost of Goods SoldEnding InventoryGross ProfitIncome before Income TaxesIncome from OperationsIncome Tax ExpenseNet Income/ (Loss)Operating ExpensesPurchasesSalesSelling ExpensesTotal Operating Expenses
Administrative ExpensesBeginning InventoryCost of Goods SoldEnding InventoryGross ProfitIncome before Income TaxesIncome from OperationsIncome Tax ExpenseNet Income/ (Loss)Operating ExpensesPurchasesSalesSelling ExpensesTotal Operating Expenses						$