Problem 9-2A (Part Level Submission) (Video)

Deleon Inc. is preparing its annual budgets for the year ending December 31, 2020. Accounting assistants furnish the data shown below.

		Product JB 50		Product JB 60
Sales budget:
Anticipated volume in units		402,800		203,900
Unit selling price		$23		$28
Production budget:
Desired ending finished goods units		27,800		19,000
Beginning finished goods units		34,900		13,600
Direct materials budget:
Direct materials per unit (pounds)		2		3
Desired ending direct materials pounds		32,100		18,500
Beginning direct materials pounds		43,000		14,600
Cost per pound		$3		$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		$14		$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 $365,000 for product JB 60, and administrative expenses of $543,000 for product JB 50 and $342,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%.

(a) Your answer is correct. Prepare the sales budget for the year. DELEON INC. Sales Budget For the Year Ending December 31, 2020 JB 50 JB 60 Total Expected Unit Sales 402800 203900 Unit Selling Price 23 28 $1 Total Sales 1 9264400 5709200 14973600 Click if you would like to Show Work for this question: Open Show Work (b) Your answer is correct. Prepare the production budget for the year. DELEON INC. Production Budget For the Year Ending December 31, 2020 JB 50 JB 60 Expected Unit Sales 402800 203900 > Add Desired Ending Finished Goods Units 27800 19000 Total Required Units 430600 222900 Less Beginning Finished Goods Units 34900 13600 Required Production Units 395700 209300 Click if you would like to Show Work for this question: Open Show Work (c) Your answer is correct. Prepare the direct materials budget for the year. DELEON INC. Direct Materials Budget For the Year Ending December 31, 2020 JB 50 JB 60 Total Units to be produced 395700 209300 Direct Materials per Unit 2 3 Total Pounds Needed for Production 791400 627900 Add Desired Ending Direct Materials (Pounds) 32100 18500 Total Materials Required 823500 646400 Less Beginning Direct Materials (Pounds) -43000 -14600 Direct Materials Purchases 780500 631800 Cost per Pound $ Total Cost of Direct Materials Purchases 2341500 1895400 4236900 click vould HLA to show for this auction. non Show World (d) Your answer is correct. 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 For the Year Ending December 31, 2020 JB 50 JB 60 Total Units to be produced 395700 209300 Direct Labor Time (Hours) per Unit 0.4 0.6 Total Required Direct Labor Hours 158280 125580 Direct Labor Cost per Hour 12 12 Total Direct Labor Cost 1899360 1506960 3406320 Click if you would like to Show Work for this question: Open Show Work (e) Your answer is partially correct. Try again. Prepare the budegeted multiple-step income statement for the year. (Note: income taxes are not allocated to the products). DELEON INC. Budgeted Income Statement For the Year Ending December 31, 2020 JB 50 JB 60 Total Sales Cost of Goods Sold Gross Profit Operating Expenses