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JB 50 JB 60 An assistant has prepared the detailed manufacturing overhead budget

ID: 2433460 • Letter: J

Question

JB 50

JB 60

An assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $660,000 for product JB 50 and $360,000 for product JB 60, and administrative expenses of $540,000 for product JB 50 and $340,000 for product JB 60. Income taxes are expected to be 30%.

Complete the following budgets for the year. (List operating expenses from largest to smallest eg 10, 5, 3, 2.)

For the Year Ending December 31, 2009

JB 50

JB 60

Total

× $

× $

$

$

$

Product Product

JB 50

JB 60

Sales budget:     Anticipated volume in units 400,000 200,000     Unit selling price $20 $25 Production budget:     Desired ending finished goods units 25,000 15,000     Beginning finished goods units 30,000 10,000 Direct materials budget:     Direct materials per unit (pounds) 2 3     Desired ending direct materials pounds 30,000 15,000     Beginning direct materials pounds 40,000 10,000     Cost per pound $3 $4 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 $12 $21

Explanation / Answer

LARUSSA INC. Sales Budget For the YearEnding December 31, 2009

JB 50

JB 60

Total Expected unit sales Unit selling price × $ × $ Total sales $ $ $