Problem 23-2A

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		402,100		204,400
Unit selling price		$23		$27
Production budget:
Desired ending finished goods units		29,900		18,100
Beginning finished goods units		33,300		14,600
Direct materials budget:
Direct materials per unit (pounds)		1		2
Desired ending direct materials pounds		31,100		16,700
Beginning direct materials pounds		42,500		12,000
Cost per pound		$2		$4
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		$21

An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $664,000 for product JB 50 and $365,000 for product JB 60, and administrative expenses of $545,000 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%.

Need Budgeted Income statement