Help I Sytem Announcement CLATOR PINTER VERSION BACK Problem 21-2A (Part Level S

Question

Help I Sytem Announcement CLATOR PINTER VERSION BACK Problem 21-2A (Part Level Submission) Deleon Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown below ProductProduct JB 50 JB 60 Sales budget: Anticipated volume in units Unit selling price 404,400202,600 $28 $23 Production budget: Desired ending finished goods units Beginning finished goods units 27,300 34,700 19,000 13,000 Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds Cost per pound 34,20019,400 44,400 12,000 $3 $3 Direct labor budget: Direct labor time per unit Direct labor rate per hour Budgeted income statement: 0.4 0.6 $10 $10 Total unit cost $14 $22 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $663,000 for product JB 50 and $361,000 for product JB 60, and administrative expenses of $544,000 for product JB 50 and $343,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30% (a) (d) (e) 2] Your answer is partially correct. Try again. Unit 6: 21

Explanation / Answer

Solution-1

DELEON INC.

Budgeted Income Statement for the yesr ending 31st December,2017.

Particula JB 50 JB 60 TOTAL Sales 9301200 5672800 14974000 Less- Cost of Goods Sold 5661600 4457200 10118800 Gross Profit 3639600 1215600 4855200 Less Operating Expenses Selling Expenses 663000 361000 1024000 Administrative Expenses 544000 343000 887000 Total Operating Expenses 1207000 704000 1911000 Income from Operating 2432600 511600 2944200 Less Interest Expenses 150000 Net Income before tax 2794200 Less Tax (30%) 838260 Net Income 1955940

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