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 60 402,300 $23 203,700 $27 28,100 34,100 18,100 12,500 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 34,000 44,600 18,500 13,400 $3 0.6 . 512 $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 $661,000 for product JB 50 and $361,000 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%. Prepare the budgeted multiple-step income statement for the year. (Note: income taxes are not allocated to the products). DELEON INC. Budgeted Income Statement For the Year Ending December 31, 2017 JB 50 JB 60 Total Sales T 9252900 T 5499900 T 14752800 Cost of Goods Sold T 5632200 4481400 10113600 Gross Profit 3620700 T 1018500 4639200 Operating Expenses Selling Expenses 661000 T 1022000 T Administrative Expenses 545000 361000 344000 705000 889000 Total Operating Expenses 1206000 T 1911000 | Income before Income Taxes | 2414700 J 313500 2728200 T Interest Expense 150000 2578200 Income before Income Taxes + TIncome Tax Expense 818460 Net Income / (Loss) 9