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 Product B503B 60 Sales budget: Anticipated volume in units 402,300 201,600 Unit selling price $23 $28 Production budget: Desired ending finished goods units Beginning finished goods units 27,30019,500 31,300 11,800 Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds Cost per pound 32,700 19,500 41,500 12,400 $3 $3 Direct labor budget: 0.4 0.6 Direct labor time per unit Direct labor rate per hour $11 $11 Budgeted income statement: Total unit cost $14 $21 An accounting assistant has prepared the detailed manufecturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $662,000 for product JB 50 and $364,000 for product JB 60, and administrative expenses of $544,000 for product JB 50 and $342,000 for product 38 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%. Prepare the sales budget for the year. DELEON INC Sales Budget JB 60 Total JB 50 Expected unit sales Unit selling price Total sales Prepare the production budget for the year. DELEON INC Production Budget JB 50 JB 60 Prepare the direct materials budget for the year.

Explanation / Answer

Sales budget :

Production budget :

JB 50 JB 60 Expected unit sale 402300 201600 Unit selling price 23 28 Total sales 9252900 5644800 14897700

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