Swifty Inc. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants furnish the data shown below. Product JB 50 Product JB 60 Sales budget: Anticipated volume in units 432,000 216,000 Unit selling price $30 $35 Production budget: Desired ending finished goods units 32,400 16,200 Beginning finished goods units 27,000 10,800 Direct materials budget: Direct materials per unit (pounds) 2 Desired ending direct materials pounds 32.400 10,800 Beginning direct materials pounds 43,200 16,200 Cost per pound $3 $4 $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 $13 $20 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $604,800 for product JB 50 and $388,800 for product JB 60, and administrative expenses of $583,200 for product JB 50 and $367,200 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 20%. SWIFTY INC. Sales Budget For the Year Ending December 31, 2022 JB 50 JB 60 Total Expected Unit Sales 432000 216000 Unit Selling Price $ 30 $ 35 Total Sales $ 12960000 $ 7560000 $ 20520000 e Textbook and Media Attempts: 1 of 3 used b) Your answer is correct. Prepare the production budget for the year. SWIFTY INC. Production Budget For the Year Ending December 31, 2022 JB 50 JB 60 Expected Unit Sales 432000 216000 Add : Desired Ending Finished Goods Units 32400 16200 otal Required Units 464400 Less Beginning Finished Goods Units 27000 i 10800 i Required Production Units 437400 221400 SWIFTY INC. Direct Materials Budget For the Year Ending December 31, 2022 JB 50 JB 60 Units to be Produced 437400 221400 Direct Materials per Unit A 3 Total Pounds Needed for Production 874800 664200 Add : Desired Ending Direct Materials (Pounds) - 32400 10800 Total Materials Required 907200 675000 Less : Beginning Direct Materials (Pounds) 43200 i 16200 i Direct Materials Purchases 864000 658800 Cost per Pound $ 3 $ 4. Total Cost of Direct Materials Purchases $ 2592000 $ 2635200 SWIFTY INC. Direct Labor Budget For the Year Ending December 31, 2022 JB 50 JB 60 Total le Produced 437400 221400 bor Time (Hours) per Unit 0.4 0.6 uired Direct Labor Hours 174960 132840 bor Cost per Hour $ 12 12 ect Labor Cost $ 2099520 $ 1594080 ta 3693600 e Textbook and Media Attempts: 1 of 3 used SWIFTY INC. Budgeted Income Statement For the Year Ending December 31, 2022 JB 50 JB 60 Total ales $ 12960000 $ 7560000 $ 20520000 Cost of Goods Sold 4 Gross Profit Operating Expenses 4 ielling Expenses Administrative Expenses otal Operating Expenses ncome from Operations 4 $ $ nterest Expense ncome before Income Taxes 4 ncome Tax Expense Jet Income /(Loss) $
