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 Product JB 50 JB 60 Sales budget: Anticipated volume in units 404,200 201,400 Unit selling price $21 $28 Production budget: Desired ending finished goods units 29,100 16,800 Beginning finished goods units 31,200 14,600 Direct materials budget Direct materials per unit (pounds) 2 Desired ending direct materials pounds 32,000 19,500 Beginning direct materials pounds 41,700 14,100 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 $12 $22 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $663,000 for product JB 50 and $364,000 for product JB 60, and administrative expenses of $541,000 for product JB 50 and $342,000 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. DELEON INC. Sales Budget For the Year Ending December 31, 2017 JB 50 JB 60 Total Expected unit sales 404200 201400 Unit selling price 28 Total sales 8488200 5639200 14127400 Click if you would like to Show Work for this question: Open Show Work SHOW ANSWER LINK TO TEXT LINK TO TEXT Attempts: 2 of 3 used (b ) Your answer is correct. Prepare the production budget for the year. DELEON INC. Production Budget For the Year Ending December 31, 2017 JB 50 JB 60 Expected Unit Sales 404200 201400 Add Desired Ending Finished Goods Units 29100 1680 Total Required Units 433300 218200 Less Beginning Finished Goods Units 31200 14600 Required Production Units 402100 203600 Click if you would like to Show Work for this question: Open Show Work SHOW ANSWER LINK TO TEXT LINK TO TEXT Attempts: 1 of 3 used(c) Your answer is correct. Prepare the direct materials budget for the year. DELEON INC. Direct Materials Budget For the Year Ending December 31, 2017 JB 50 JB 60 Total Units to be Produced 40210 20360 Direct Materials per Unit Total Pounds Needed for Production 10210 40720 Add Desired Ending Direct Materials 3200 19500 Total Materials Required 34100 126700 Beginning Direct Materials 41700 14100 Direct Materials Purchases 392400 412600 Cost per Pound Total Cost of Direct Materials Purchases 1177200 1237800 2415000 Click if you would like to Show Work for this question: Open Show Work SHOW ANSWER LINK TO TEXT LINK TO TEXT Attempts: 2 of 3 used (d) Your answer is correct. Prepare the direct labor budget for the year. (Round Direct labor time per unit answers to 1 decimal place, e.g. 52.7.) DELEON INC. Direct Labor Budget For the Year Ending December 31, 2017 B 50 B 60 Total Units to be Produced 402100 203600 Direct Labor Time per Unit Total Required Direct Labor Hours 160840 22160 Direct Labor Cost per Hour Total Direct Labor Cost 1930080 1465920 3396000 Click if you would like to Show Work for this question: Open Show Work SHOW ANSWER LINK TO TEXT LINK TO TEXT Attempts: 1 of 3 used (e) Prepare the budgeted multiple-step income statement for the year. (Note: income taxes are not allocated to the products). DELEON INC. Budgeted Income Statement For the Year Ending December 31, 2017 JB 50 JB 60 Total Sales 8488200 5639200 14127400 Cost of Goods Sold Gross Profit Operating Expenses Selling Expenses Administrative Expenses Total Operating Expenses Income from Operations Income before Income Taxes Income Tax Expense Net Income / (Loss) Administrative Expenses Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO TEXT Attempts: 0 of 3 used