Problem 21-2A (Part Level Submission) Product JB 50 Product JB 60 (a) DELEON INC

Question

Problem 21-2A (Part Level Submission)

Product
JB 50

Product
JB 60

(a)

DELEON INC.
Sales Budget
For the Year Ending December 31, 2014

JB 50

JB 60

Total

Problem 21-2A (Part Level Submission)

Deleon Inc. is preparing its annual budgets for the year ending December 31, 2014. Accounting assistants furnish the data shown below.

Product
JB 50

Product
JB 60

Sales budget:     Anticipated volume in units 401,700 203,300     Unit selling price $22 $28 Production budget:     Desired ending finished goods units 29,800 19,400     Beginning finished goods units 32,900 13,100 Direct materials budget:     Direct materials per unit (pounds) 2 2     Desired ending direct materials pounds 35,000 16,300     Beginning direct materials pounds 42,400 13,600     Cost per pound $2 $3 Direct labor budget:     Direct labor time per unit 0.4 0.5     Direct labor rate per hour $11 $11 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 $662,400 for product JB 50 and $361,000 for product JB 60, and administrative expenses of $543,300 for product JB 50 and $343,600 for product JB 60. Income taxes are expected to be 30%.

Explanation / Answer

Answer has been given below-

DELEON INC.

JB 50

JB 60

Total

Expected unit sales

         401,700

         203,300

Total sales

Answer has been given below-

DELEON INC.

Sales Budget For the Year Ending December 31, 2014

JB 50

JB 60

Total

Expected unit sales

         401,700

         203,300

$               22 $               28

Total sales

$   8,837,400 $   5,692,400 $   14,529,800

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