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 403,200 205,000    

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 2    

Desired ending direct materials pounds 33,300 17,900    

Beginning direct materials pounds 43,500 13,100    

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%.

What's the sales budget for the year?

Deleon Inc.

Sales Budget

For the year ending in December 31, 2017

JB 50 JB 60 Total

Expected unit sales _______ ______

Unit selling price $ _____ $ _____

Total sales_________$______ $ _____ $ ______

Please show work.