Deleon Inc. is preparing its annual budgets for the year ending December 31, 201

Question

Deleon Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown below.

Product
JB 50

Product
JB 60

An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $664,000 for product JB 50 and $365,000 for product JB 60, and administrative expenses of $545,000 for product JB 50 and $345,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%.

a) prepare a sales budget for the year : ( expected sales, unit price, total sales)

Product
JB 50

Product
JB 60

Sales budget:     Anticipated volume in units 402,100 204,400     Unit selling price $23 $27 Production budget:     Desired ending finished goods units 29,900 18,100     Beginning finished goods units 33,300 14,600 Direct materials budget:     Direct materials per unit (pounds) 1 2     Desired ending direct materials pounds 31,100 16,700     Beginning direct materials pounds 42,500 12,000     Cost per pound $2 $4 Direct labor budget:     Direct labor time per unit 0.3 0.6     Direct labor rate per hour $12 $12 Budgeted income statement:     Total unit cost $13 $21

Explanation / Answer

a) Sales budget for the years is;

Deleon Inc..

Sales Budget

For the year ended 31, December,2017

Deleon Inc..

Sales Budget

For the year ended 31, December,2017

Product JB 50 Product JB 60 Total 1) Sales units 402,100 204,400 606,500 2) Selling price per units $23 $27 3)Sales Revenu (1x2) $9,248,300 $5,518,500 $14,767,100

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