Prepare the following budgets for the year. Show data for each product. A quarterly budget will not be prepared.

A) Sales

B) Production

C) Direct Material

D) Direct Labor

E) Income Statement (Income taxes are not allocated to the products)

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Lily Inc. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants furnish the data shown below. 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 Product JB 50 336.000 $25 25,200 21,000 2 25,200 33,600 $3 0.4 $12 $13 Product JB 60 168,000 $30 12,600 8,400 3 8,400 12,600 $4 0.6 $12 $20 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $470,400 for product JB 50 and $302,400 for product JB 60, and administrative expenses of $453,600 for product JB 50 and $285,600 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 20%. Lily Inc. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants furnish the data shown below. 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 Product JB 50 336.000 $25 25,200 21,000 2 25,200 33,600 $3 0.4 $12 $13 Product JB 60 168,000 $30 12,600 8,400 3 8,400 12,600 $4 0.6 $12 $20 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $470,400 for product JB 50 and $302,400 for product JB 60, and administrative expenses of $453,600 for product JB 50 and $285,600 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 20%.

Answer rating: 100% (QA)

a sales Sales budget Expected Sales units Unit selling Price Sales b Production Production Budget Ex... View the full answer