Raleigh Inc. is preparing its annual budgets for the year ending December 31, 2012. Accounting assistants furnish the following data. Product LN 35 Product LN 40 Sales budget: Anticipated volume in units 400,000 240,000 Unit selling price $25 $35 Production budget: Desired ending finished goods 30,000 25,000 units Beginning finished goods units 20,000 15,000 Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds 2 3 50,000 20,000 Beginning direct materials pounds 40,000 10,000 Cost per pound $2 $3 Direct labor budget: Direct labor time per unit 0.5 0.75 Direct labor rate per hour $12 $12 Budgeted income statement: Total unit cost $11 $20 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $750,000 for product LN 35 and $590,000 for product LN 40, and administrative expenses of $420,000 for product LN 35 and $380,000 for product LN 40. Income taxes are expected to be 30%. Instructions Prepare the following budgets for the year. Show data for each product. You do not need to prepare quarterly budgets. (a)Sales (b)Production (c)Direct materials (d)Direct labor (e)Income statement (Note: Income taxes are not allocated to the products.)