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 $23 201,600 $28 27,300 31,300 19,500 11,800 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 2 32,700 41,500 $3 2 19,500 12,400 $3 0.4 0.6 $11 $11 $14 $21 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $662,000 for product JB 50 and $364,000 for product JB 60, and administrative expenses of $544,000 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%. Your answer is correct. 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 402,300 201,600 Unit Selling Price 23 28 $ $1 Total Sales 9,252,900 5,644,800 14,897,700 $ 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 402,300 201,600 Add Desired Ending Finished Goods Units 27,300 19,500 Total Required Units 429,600 221,100 Less Beginning Finished Goods Units 31,300 11,800 Required Production Units 398,300 209,300 LINK TO TEXT LINK TO VIDEO Your answer is correct. Prepare the direct materials budget for the year. DELEON INC. Direct Materials Budget For the Year Ending December 31, 2020 JB 50 M 398,300 JB 60 Total Units to be produced 209,300 Direct Materials per Unit 2 2 Total Pounds Needed for Production 796,600 418,600 Add Desired Ending Direct Materials (Pounds) 32,700 19,500 Total Materials Required 829,300 438,100 Less Beginning Direct Materials (Pounds) 41,500 12,400 Direct Materials Purchases 787,800 425,700 Cost per Pound 3 $ Total Cost of Direct Materials Purchases 2,363,400 1,277,100 3,640,500 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. 52.5.) DELEON INC. Direct Labor Budget For the Year Ending December 31, 2020 JB 50 JB 60 Total Units to be produced 398,300 209,300 Direct Labor Time (Hours) per Unit 0.4 0.6 Total Required Direct Labor Hours 159,320 125,580 Direct Labor Cost per Hour 11 11 Total Direct Labor Cost 1,752,520 1,381,380 3,133,900 Your answer is partially correct. Try again. Prepare the budegeted 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, 2020 JB 50 JB 60 Total Sales 9,252,900 5,644,800 14,897,700 $1 $ X X x Cost of Goods Sold 2,363,400 1,277,100 3,640,500 X X Gross Profit 6,889,500 4,367,700 Operating Expenses Selling Expenses X Administrative Expenses x Total Operating Expenses x Income from Operations Interest Expense Income before Income Taxes Income Tax Expense Net Income / (Loss) Click if you would like to Show Work for this question: Open Show Work
