Raleigh Inc. is preparing its annual budgets for the year ending December 31, 2012. Accounting assistants furnish the following data.

                

                

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