Unit 5 Lab--Principles of Accounting II

Problem 24-02A a-e

Deleon Inc. is preparing its annual budgets for the year ending December 31, 2020. Accounting assistants furnish the data shown below.

Product JB 50 Product JB 60

Sales budget:

Anticipated volume in units 402,600 201,800

Unit selling price $23 $27

Production budget:

Desired ending finished goods units 28,700 19,900

Beginning finished goods units 34,800 14,100

Direct materials budget:

Direct materials per unit (pounds) 2 3

Desired ending direct materials pounds 34,800 19,900

Beginning direct materials pounds 43,300 12,700

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 $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 $661,000 for product JB 50 and $365,000 for product JB 60, and administrative expenses of $544,000 for product JB 50 and $345,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30

a.Prepare the sales budget for the year.

b. Prepare the production budget for the year.

c. Prepare the direct materials budget for the year.

d. Prepare the direct labor budget for the year.

e. Prepare the budegeted multiple-step income statement for the year