(1) Deleon Inc. is preparing its annual budgets for the year ending December 31, 2020. Accounting assistants furnish the data shown below. Product NL 50 Product NL 60 Sales budget: Anticipated volume in units Quarter 1 2,000 500 Quarter 2 1,800 800 Quarter 3 2,200 400 Quarter 4 1,500 600 Unit selling price $95 $60 Production budget: Desired ending finished goods each quarter 20% 20% of the next quarter's expected sales units Beginning finished goods Units 300 200 Cost $18000 $7000 Direct materials budget: Direct materials per unit (pounds) Item (x) 3 2 Cost per pound $3 Item (Y) 4 3 Cost per pound $2 Desired ending direct materials pounds 10% 10% of the next quarter's production requirements Beginning direct materials pounds Units 200 150 Cost per pound $4 $2 Direct labor budget: Direct labor time per unit 2 1 Direct labor rate per hour $15 $15 Manufacturing Overhead Variable overhead costs per direct labor hour Indirect materials $0.5 Indirect labor $1.5 Utilities $0.75 Maintenance $0.25 Fixed overhead costs per quarter: Supervisory salaries $20,000 Depreciation $3,800 $2,300 is related to buildings and $1,500 is attributable to equipment. Insurance $9,000 Maintenance $5,700 Selling and Administrative Expense Variable costs per dollar of sales Delivery expense 0.75% Sales commissions 4.50% Utilities 2.75% Fixed overhead costs per quarter: Sales salaries $15,000 Office salaries $7,500 Depreciation $1,000 $600 is related to buildings and $400 is attributable to equipment. Insurance $1,500 Advertising $5,000 Repaire Expense $900 All sales are on account. Collections are expected to be 50% in the month of sale,30% in the first month following the sale, and 20% in the second month following the sale. Sixty percent (60%) of direct materials purchases are paid in cash in the month of purchase, and the balance due is paid in the month following the purchase. All other items above are paid in the month incurred. Other data: 1. Accounts Receivable: December 2019, $29,000; are expected to be collected in 2020; the first quarter $17,400; and second quarter $11,600. 2.Accounts Payable: December 2016, $10,800; are expected to be collected in the first quarter 2020. 3. Other receipts: Januaryproceeds from sale of securities $2,000. 4. Other disbursements: Aprilpayment of $20,000 for Equipment; July-Notes payable of $9,800 were redeemed at their face value for cash. 5. Income taxes are estimated to be $9,000. Paid in three equal quarterly installments started at the end of quarter 2. 6. Deleon uses the FIFO inventory method for evaluating all endings inventories. 7. The company's cash balance on January 1, 2020, is expected to be $180,000. The company wants to maintain a minimum cash balance of $85,000. 8. Loans and interest are repaid in the earliest quarter in which there is sufficient cash (interest expense: $560). Deleon Inc.' balance sheet at December 31, 2019, is presented below. Deleon Inc. Balance Sheet December 31, 2019 Assets Current assets Cash 180,000 Accounts receivable 29,000 Marketable securities 2,000 Finished goods inventory 25,000 Raw Material inventory 1,100 26,100 Total current assets 237,100 Property, plant, and equipment Land 150,000 Buildings 230,000 Less: Accumulated depredation -57,500 172,500 Equipment 160,000 Less: Accumulated depredation -40,000 120,000 Total property, plant, and equipment 442,500 Total assets 679,600 Liabilities and Stockholders' Equity Liabilities Accounts payable 10,800 Notes payable 9,800 Total liabilities 20,600 Stockholders' equity Common stock 500,000 Retained earnings 159,000 Total stockholders' equity 659,000 Total liabilities and stockholders' equity 679,600 Instructions Prepare the following budgets for the year. Show data for each product. Quarterly budgets should be prepared. a. Sales. b. Production. c. Direct materials.. d. Direct labor. e. Manufacturing overhead f. Selling and administrative expense g. Multiple-step budgeted income statement h. schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases i. Cash budget