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 60 401,000 $21 201,000 $27 26,000 31,000 16,000 11,000 1 Sales budget: Anticipated volume in units Unit selling price Production budget: Desired ending finished goods units Beginning finished goods units Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds Cost per pound Direct labor budget: Direct labor time per unit Direct labor rate per hour Budgeted income statement: Total unit cost 31,000 41,000 $2 2 16,000 11,000 $3 0.3 0.6 $10 $10 $12 $21 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 $541,000 for product JB 50 and $341,000 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 401000 201000 Unit selling price 21 27 $U 1 Total sales 8421000 5427000 13848000 Click if you would like to Show Work for this question: Open Show Work SHOW ANSWER (d) (b) Your answer is correct. 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.) Prepare the production budget for the year. DELEON INC. Production Budget For the Year Ending December 31, 2017 DELEON INC. Direct Labor Budget For the Year Ending December 31, 2017 JB 50 JB 60 Total JB 50 JB 60 Units to be produced 396000 206000 Expected Unit Sales 401000 201000 Direct Labor Time per Unit 0.3 0.6 Add Desired Ending Finished Goods Units 26000 16000 Total Required Direct Labor Hours 118800 123600 Total Required Units 427000 217000 Direct Labor Cost per Hour 10 10 Less V Beginning Finished Goods Units -31000 -11000 Total Direct Labor Cost 1188000 1236000 2424000 Required Production Units 396000 206000 Prepare the budgeted multiple-step income statement for the year. (Note: income taxes are not allocated to the products). (c) DELEON INC. Budgeted Income Statement Your answer is correct. For the Year Ending December 31, 2017 Prepare the direct materials budget for the year. JB 50 JB 60 Total Sales 8421000 5427000 13848000 DELEON INC. Direct Materials Budget For the Year Ending December 31, 2017 Cost of Goods Sold JB 50 JB 60 Total Gross Profit Units to be Produced 396000 206000 V Direct Materials per Unit Operating Expenses 1 M 661000 Total Pounds Needed for Production 396000 412000 Selling Expenses 361000 1022000 Add v Desired Ending Direct Materials 31000 16000 Administrative Expenses 541000 341000 882000 1 Total Materials Required 427000 428000 Total Operating Expenses 1202000 702000 1904000 Less Beginning Direct Materials 41000 11000 1 Direct Materials Purchases 386000 417000 Cost per Pound 1 Total Cost of Direct Materials Purchases v 772000 1251000 2023000 Net Income / (Loss)