CES Problem 13-2 (Part Level Submission) Blue Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown below. Product JB 50 Product JB 60 404,200 201,400 $28 $21 udy 29,100 31,200 16,800 14,600 2 Sales budget: Anticipated volume in units Unit selling price Production budget: Desired ending finished goods units Beginning finished goods units Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds Cost per pound Direct labor budget: Direct labor time per unit Direct labor rate per hour Budgeted income statement: Total unit cost 32,000 41,700 $3 19,500 14,100 * 0.4 $12 0.6 $12 $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 $663,000 for product JB 50 and $364,000 for product JB 60, and administrative expenses of $541,000 for product JB 50 and $342,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%. (a) CALCULATOR BLUE INC. Budgeted Income Statement For the Year Ending December 31, 2017 A JB 50 JB 60 Total T Sales Sales T Cost of Goods Sold - Gross Profit Purchases T Selling Expenses noll llll 000 ODDOLID Income Tax Expense Interest Expense Selling Expenses Ending Inventory Administrative Expenses - Net Income / (Loss)