Problem 22-02A Deleon Inc. is preparing its annual budgets for the year ending December 31, 2020. Accounting assistants furnish the data shown below. Product JB 50 Product JB 60 402,300 $23 203,700 $27 28,100 34,100 18,100 12.500 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 1 34,000 44,600 $3 18,500 13,400 $3 0.4 $12 0.6 $12 $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 $561,000 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 sales budget for the year. DELEON INC. Sales Budget For the Year Ending December 31, 2020 JB 50 JB 60 Total Expected Unit Sales 402300 203700 23 Unit Selling Price 27 $1 Total Sales 9252900 5499900 14752800 $1 Prepare the sales budget for the year. DELEON INC. Sales Budget For the Year Ending December 31, 2020 JB 50 JB 60 Total Expected Unit Sales 402300 203700 23 Unit Selling Price 27 $1 Total Sales 9252900 5499900 14752800 $1 Your answer is correct. Prepare the production budget for the year. DELEON INC. Production Budget For the Year Ending December 31, 2020 JB 50 JB 60 Expected Unit Sales 402300 203700 Add Desired Ending Finished Goods Units 28100 18100 > Total Required Units 430400 221800 Less Beginning Finished Goods Units 34100 12500 Required Production Units 396300 209300 Prepare the direct materials budget for the year. DELEON INC. Direct Materials Budget For the Year Ending December 31, 2020 JB 50 Units to be produced 396300 JB 60 Total 209300 Direct Materials per Unit Total Pounds Needed for Production 396300 627900 Add Desired Ending Direct Materials (Pounds) 34000 18500 Total Materials Required 430300 646400 Less Beginning Direct Materials (Pounds) 44600 13400 Direct Materials Purchases 385700 633000 Cost per Pound 3.000 3.00 $ $ Total Cost of Direct Materials Purchases 1157100 1899000 3056100 | 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. 5 DELEON INC. Direct Labor Budget For the Year Ending December 31, 2020 JB 50 JB 60 Total Units to be produced 396300 209300 Direct Labor Time (Hours) per Unit 0.4 0.6 Total Required Direct Labor Hours 158520 125580 Direct Labor Cost per Hour 12 12 Total Direct Labor Cost 1902240 1506960 3409200 DELEON INC. Budgeted Income Statement For the Year Ending December 31, 2020 JB 50 JB 60 Total Sales 9252900 5499900 14752800 $ X Cost of Goods Sold Gross Profit Operating Expenses Selling Expenses 661000 361000 1022000 Administrative Expenses 545000 344000 889000 Total Operating Expenses 1206000 705000 1911000 X Income from Operations Interest Expense 150000 Income before Income Taxes Income Tax Expense Net Income / (Loss) Click if you would like to Show Work for this question: Open Show Work