Problem 21-2A

Deleon 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
Sales budget:
Anticipated volume in units		402,500		201,200
Unit selling price		$22		$27
Production budget:
Desired ending finished goods units		27,700		19,300
Beginning finished goods units		31,800		11,100
Direct materials budget:
Direct materials per unit (pounds)		1		3
Desired ending direct materials pounds		34,700		18,800
Beginning direct materials pounds		44,900		14,700
Cost per pound		$3		$3
Direct labor budget:
Direct labor time per unit		0.3		0.6
Direct labor rate per hour		$12		$12
Budgeted income statement:
Total unit cost		$13		$22

An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $662,000 for product JB 50 and $363,000 for product JB 60, and administrative expenses of $544,000 for product JB 50 and $343,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%.

Your answer is partially correct. Try again Prepare the sales budget for the year. DELEON INC. Sales Budget For the Year Ending December 31, 2017 JB 50 JB 60 Expected unit sales Unit selling price T Total sales Total