Problem 23-2A (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 60 404,200 $21 201,400 $28 29,100 31,200 16,800 14,600 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. 19,500 32,000 41,700 $3 $12 $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 21 28 Total sales 8488200 5639200 14127400 (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 4025 201400 Desired Ending Finished Goods Units T. 29100 16800 Total Required Units 433300 218200 Total Required Units Less ). Begini Required Production Units Less Beginning Finished Goods Units 31200 14600 402100 203600 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 Y JB 60 Total TUnits to be produced 402100 203600 Direct Materials per Unit 2 Total Pounds Needed for Production - 402100 407200 Desired Ending Direct Materials 32000 19500 Total Materials Required : 434100 426700 Beginning Direct Materials 41700 14100 Direct Materials Purchases 392400 412600 Cost per Pound TTotal Cost of Direct Materials Purchases | 1177200 1237800 2415000 (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. 52.5.) DELEON INC. Direct Labor Budget For the Year Ending December 31, 2017 JB 50 JB 60 Total Units to be produced 402100 203600 Direct Labor Time per Unit 0.4 0.6 Total Required Direct Labor Hours 160840 122160 Direct Labor Cost per Hour 12 Total Direct Labor Cost 1930080 1465920 3396000 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, 2017 - JB 50 JB 60 Total Sales 8488200 5639200 14127400 Cost of Goods Sold 2 8488200 5639200 14127400 TGross Profit TOperating Expenses 1 Selling Expenses 663000 364000 1027000 | Administrative Expenses 541000 342000 883000 Total Operating Expenses 1204000 706000 1910000 Total Operating Expenses 1204000 706000 1910000 Income from Operations 4131440 2274720 6406160 Interest Expense 150000 X Income before Income Taxes 6391160 Income Tax Expense C 1917348 Net Income / (Loss) 4473812
