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		402,500		202,500
Unit selling price		$23		$28
Production budget:
Desired ending finished goods units		30,000		16,000
Beginning finished goods units		33,500		13,800
Direct materials budget:
Direct materials per unit (pounds)		1		3
Desired ending direct materials pounds		32,700		18,900
Beginning direct materials pounds		43,300		14,200
Cost per pound		$3		$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		$12		$21

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 $363,000 for product JB 60, and administrative expenses of $545,000 for product JB 50 and $343,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%.

Warning

Don't show me this message again for the assignment

Ok

Cancel

Prepare the sales budget for the year.

DELEON INC. Sales Budget
		JB 50		JB 60		Total
Expected unit sales
Unit selling price		$		$
Total sales		$		$		$

Warning

Don't show me this message again for the assignment

Ok

Cancel

Prepare the production budget for the year.

DELEON INC. Production Budget
		JB 50		JB 60
:
:

Warning

Don't show me this message again for the assignment

Ok

Cancel

Prepare the direct materials budget for the year.

DELEON INC. Direct Materials Budget
		JB 50		JB 60		Total
:
:
		$		$
		$		$		$

Warning

Don't show me this message again for the assignment

Ok

Cancel

Prepare the direct labor budget for the year. (Round Direct labor time per unit answers to 1 decimal place, e.g. 52.5.)

DELEON INC. Direct Labor Budget
		JB 50		JB 60		Total
		$		$
		$		$		$

Warning

Don't show me this message again for the assignment

Ok

Cancel

Prepare the budegeted multiple-step income statement for the year. (Note: income taxes are not allocated to the products).

DELEON INC. Budgeted Income Statement
		JB 50		JB 60		Total
		$		$		$
		$		$
						$

Warning

Don't show me this message again for the assignment

Ok

Cancel