Problem 9-2A (Video) Deleon Inc. is preparing its annual budgets for the year ending December 31, 2020. Accounting assistants furnish the data shown below. Product Product JB 50 JB 60 402,300 203,700 $23 $27 28,100 18,100 34,100 12,500 1 3 Sales budget: Anticipated volume in units Unit selling price Production budget: Desired ending finished goods units Beginning finished goods units Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds Cost per pound Direct labor budget: Direct labor time per unit Direct labor rate per hour Budgeted income statement: Total unit cost 34,000 18,500 44,600 13,400 $3 $3 0.4 0.6 $12 $12 $14 $22 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 $361,000 for product JB 60, and administrative expenses of $545,000 for product JB 50 and $344,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%. 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 4 402,300 203,700 Unit Selling Price 23 27 $1 Total Sales 9,252,90 5,499,90 14,752,8 $ LINK TO TEXT LINK TO TEXT LINK TO VIDEO 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 402,300 203,700 Add 4 Desired Ending Finished Goods Units 28,100 18,100 Total Required Units 430,400 221,800 Less Beginning Finished Goods Units 34,100 12,500 Required Production Units 396,300 209,300 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 396,300 209,300 Direct Materials per Unit 1 3 Total Pounds Needed for Production 396,300 627,900 Add Desired Ending Direct Materials (Pounds) - 34,000 18,500 Total Materials Required 430,300 646,400 Less Beginning Direct Materials (Pounds) 44,600 13,400 Direct Materials Purchases 385,700 633,000 Cost per Pound 3 3 $ $1 Total Cost of Direct Materials Purchases 1,157,10 1,899,00 3,056,10 SHOW SOLUTION LINK TO TEXT LINK TO TEXT LINK TO VIDEO 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 9,252,90 5,499,90 14,752,8 Cost of Goods Sold 5,632,20 4,481,401 10,113,6 Gross Profit 3,620,70 1,018,50 4,639,20 Operating Expenses Selling Expenses 661,000 361,000 1,022,00 Administrative Expenses 545,000 344,000 889,000 Total Operating Expenses 1,206,00 705,000 1,911,00 x Income before Income Taxes Income Tax Expense ill Income before Income Taxes 4 X Income Tax Expense 818,460 Net Income / (Loss) 1,909,74 Click if you would like to Show Work for this question: Open Show Work