Problem 9-2A Deleon Inc, is preparing its annual budgets for the year ending Dec

Question

Problem 9-2A Deleon Inc, is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown below Product Product Sales budget: Anticipeted volume in units Unit selling price 402,500 201,200 $27 $22 Production budget: Desired ending finished goods units cginning finished goods units 27,700 19,30 31,800 11,100 Direct matcrials budget: Direct materials per unit (pounds) Desired ending direct materias pounds 34,700 18,800 Beginning direct materials pounds Cost per pound 44,900 14,700 $3 63 Direct labor budget: 0.3 $12 0.6 irect labor time per unit Direct labor rate per hour $12 Budgeted income stotement: Total unit cost $13 $22 An accounting assistant hes prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows seling expenses of s662,c00 for product 18 50 and S363,000 for product JB 60, and administrative expenses of $544,000 for product ] B 50 and $343,000 for product ]8 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, 201 D 60 Total Expected unit sale 402 2012 Unit selling price 08s00$40240 14287400 Total sales 885S

Explanation / Answer

production budget JB50 JB60 Expected unit sales Add:Desired ending finished goods total units required less:Beginning finished goods Required production units Direct materials budgeted units to be produced direct materials per unit total pounds needed for production Add:Desired ending direct materials total materials required less:Beginning direct materials direct material purchases cost per unit total cost of direct material purchased Direct labor budget JB50 JB60 units to be produced 398400 209400 direct labor time (hours)per unit 0.3 0.6 total required direct labor hours 119520 125640 direct labor cost per unit total direct labor cost

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