Problem 21-2A (Part Level Submission)

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		403,400		201,800
Unit selling price		$22		$27
Production budget:
Desired ending finished goods units		27,500		17,200
Beginning finished goods units		32,800		13,800
Direct materials budget:
Direct materials per unit (pounds)		2		3
Desired ending direct materials pounds		31,100		17,800
Beginning direct materials pounds		42,600		12,000
Cost per pound		$2		$3
Direct labor budget:
Direct labor time per unit		0.3		0.6
Direct labor rate per hour		$10		$10
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 $361,000 for product JB 60, and administrative expenses of $541,000 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%.

A)

B)

C)

D)

E)

Prepare the sales budget for the year. DELFON INC. Sales Budget JB 50 Total Expected unit sales Unit selling price Total sales Click if you would like to Show Work for this question: Open Show Work Your answer is partially correct. Try again. Prepare the production budget for the year. DELEON INC. Production Budget For the Year Ending December 31, 2017 Expected Unle Sales Add Desired Ending Finished Goods Unitse WAX Total Required Units Less Beginning Finished Goods Units Required Production Units Your answer is partially correct. Ty again Prepare the direct materials budget for the year DELEON INC Direct Materials Budget For the Year End 2017 'T Units to be produced "Direct Materials per Unit 1 Total Pounds Needed for Production 00 metrol tinding Direct Materiais near Materiale Recured los Begiving Direct Materiale Directoriels Purchases Y TO Cost of Direct Materials Purchases Your answer is partially correct. Try again. 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 For the Year Ending December 31, 2017 1 Units to be produced Direct Labor Time per Unit Total Required Direct Labor Hours Direct Labor Cost per Hour " Tots Direct Labor Cost DELEON INC. Budgeted Income Statement For the Year Ending December 31, 2017 JB 60 Sales TCost of Goods Sold IT Selling Expenses T Administrative Expenses T Total Operating Expenses Income before Income Taxes Income Tax Expense T Net Income / (Loss)