Problem 21-2A

Deleon Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown below.

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 60 Product J 50 Sales budget: Anticipated volume in units 403,200 205,000 Unit selling price $22 $27 Production budget: Desired ending finished goods units 26,300 16,000 Beginning finished goods units 31,200 13,300 Direct materials budget: Direct materials per unit (pounds) 2 17,900 Desired ending direct materials pounds 33,300 Beginning direct materials pounds 13,100 43,500 Cost per pound $2 $3 Direct labor budget: Direct labor time per unit 0.4 0.6 Direct labor rate per hour $12 $12 Budgeted income statement: Total unit cost $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 $662,000 for product JB 50 and $362,000 for product JB 60, and administrative expenses of $542,000 for product JB 50 and $345,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%. Prepare the sales budget for the year. DELEON INC Sales Budget JB 50 JB 60 Total Expected unit sales Prepare the sales budget for the year. DELEON INC. Sales Budget J 50 Total JB 60 Expected unit sales Unit selling price $ Total sales $ $ Prepare the production budget for the year DELEON INC Production Budget J 60 JB 50 Prepare the direct materials budget for the year. DELEON INC. Direct Materials Budget JB 50 JB 60 Total $ $ $ $ $ Prepare the direct labor budget for the year. (Round Direct labor time per unit answers to 1 decimal place, e.g. 52.7.) DELEON INC Direct Labor Budget JB 50 Total JB 60 Prepare the budgeted multiple-step income statement for the year. (Note: income taxes are not allocated to the products). DELEON INC. Budgeted Income Statement J 60 Total JB 50 $ $ $ $ $ $