Larussa Inc. is preparing its annual budgets for the year ending December 31, 2013. Accounting assistants furnish the data shown below.

		Product	Product
		JB 50	JB 60
	Sales budget:
	Anticipated volume in units	400,000	200,000
	Unit selling price	$20	$25
	Production budget:
	Desired ending finished goods units	25,000	15,000
	Beginning finished goods units	30,000	10,000
	Direct materials budget:
	Direct materials per unit (pounds)	2	3
	Desired ending direct materials pounds	30,000	15,000
	Beginning direct materials pounds	40,000	10,000
	Cost per pound	$3	$4
	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	$21

An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $660,000 for product JB 50 and $360,000 for product JB 60, and administrative expenses of $540,000 for product JB 50 and $340,000 for product JB 60. Income taxes are expected to be 30%.

Instructions

Complete the following budgets for the year.

(a)	Sales	(d)	Direct labor
(b)	Production	(e)	Income statement (Note: Income taxes are not allocated to the products.)
(c)	Direct materials