Pronghorn 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

Sales budget:

Anticipated volume in units 403,300 202,500

Unit selling price $21 $28

Production budget:

Desired ending finished goods units 26,800 16,700

Beginning finished goods units 33,800 12,900

Direct materials budget:

Direct materials per unit (pounds) 1 2

Desired ending direct materials pounds 33,300 18,800

Beginning direct materials pounds 44,800 13,300

Cost per pound $3 $3

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 $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 $661,000 for product JB 50 and $364,000 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%.

Prepare production Budget, direct materials Budget, Direct labor Budget and Budgeted income statement.