Problem 13-2 (Part Level Submission) Martinez 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 60 403,200 $23 203,300 $28 28,000 33,500 17,000 12,100 1 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 33,100 44,900 $3 2 16,400 14,900 $4 0.3 0.6 $11 $11 $14 $22 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $665,000 for product JB 50 and $362,000 for product JB 60, and administrative expenses of $545,000 for product JB 50 and $344,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%. Your answer is correct. Prepare the sales budget for the year. MARTINEZ INC. Sales Budget For the Year Ending December 31, 2017 JB 50 JB 60 Total Expected unit sales 403200 203300 > Unit selling price 23 28 $ Total sales 9273600 5692400 14966000 Your answer is correct. Prepare the production budget for the year. MARTINEZ INC. Production Budget For the Year Ending December 31, 2017 JB 50 JB 60 Expected Unit Sales 403200 203300 Add Desired Ending Finished Goods Units 28000 17000 431200 220300 Total Required Units Less Beginning Finished Goods Units > 33500 12100 > Required Production Units 397700 208200 Prepare the direct materials budget for the year. MARTINEZ INC. Direct Materials Budget JB 50 JB 60 Total > $ $ $ Cost per Pound Total Cost of Direct Materials Purchases Expected Unit Sales Total Direct Labor Cost Total Materials Required Desired Ending Finished Goods Units Total Pounds Needed for Production Total Required Direct Labor Hours Total Required Units Beginning Finished Goods Units Direct Materials Purchases Beginning Direct Materials Units to be Produced Direct Labor Cost per Hour Desired Ending Direct Materials Direct Labor Time per Unit Direct Materials per Unit