Problem 21-2A (Part Level Submission) Product Product JB 50 JB 60 Sales budget A
ID: 2528565 • Letter: P
Question
Problem 21-2A (Part Level Submission)
Product Product JB 50 JB 60 Sales budget Anticipated volume in units Unit selling price 404,400201,000 $22 $27 Production budget: Desired ending finished goods units Beginning finished goods units 28,800 34,100 17,600 13,100 Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds Cost per pound 34,600 41,100 $2 16,400 13,000 Direct labor budget Direct labor time per unit Direct labor rate per hour Budgeted income statement 0.3 $10 0.6 $10 Total unit cost $13 $22Explanation / Answer
Solution:
DELON INC
Budgeted Income Statement
For the Year Ended December 31, 2017
JB 50
JB 60
Total
Sales
$8,896,800
$5,427,000
$14,323,800
Cost of Goods Sold
$2,022,000
$2,814,000
$4,836,000
Gross Margin
$6,874,800
$2,613,000
$9,487,800
Selling and administrative expenses:
Selling Expenses
$662,000
$365,000
$1,027,000
Administrative Expenses
$545,000
$345,000
$890,000
Total Selling and administrative expenses
$1,207,000
$710,000
$1,917,000
Segment Margin (loss)
$5,667,800
$1,903,000
$7,570,800
Interest Expense
$150,000
Profit before taxes
$7,420,800
Less: Income tax @ 30%
$2,226,240
Net Profit
$5,194,560
Note 1 –
Cost of Goods Sold
JB 50
JB 60
Total
Expected Sales Units
404400
201000
Unit Product Cost
Direct material cost per unit
$2
(1 pound needed per unit x $2)
$8
(2 pound needed per unit x $4)
Direct labor cost per unit
$3
(0.3hr required per unit x$10)
$6
(0.6hr required per unit x $10)
Unit Product Cost
$5
$14
Cost of Goods Sold
(Units Sold x Unit Product Cost)
$2,022,000
(404400*5)
$2,814,000
(201000*14)
$4,836,000
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DELON INC
Budgeted Income Statement
For the Year Ended December 31, 2017
JB 50
JB 60
Total
Sales
$8,896,800
$5,427,000
$14,323,800
Cost of Goods Sold
$2,022,000
$2,814,000
$4,836,000
Gross Margin
$6,874,800
$2,613,000
$9,487,800
Selling and administrative expenses:
Selling Expenses
$662,000
$365,000
$1,027,000
Administrative Expenses
$545,000
$345,000
$890,000
Total Selling and administrative expenses
$1,207,000
$710,000
$1,917,000
Segment Margin (loss)
$5,667,800
$1,903,000
$7,570,800
Interest Expense
$150,000
Profit before taxes
$7,420,800
Less: Income tax @ 30%
$2,226,240
Net Profit
$5,194,560
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