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) Prepare the sales budget for the year. DELEON INC. Sales Budget JB 50 JB 60 Total $ $ $