Question

Question 1 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 Sales budget: Anticipated volume in units 402,500 202,500 Unit selling price $23 $28 Production budget: Desired ending finished goods units 30,000 16,000 Beginning finished goods units 33,500 13,800 Direct materials budget: Direct materials per unit (pounds) 1 3 Desired ending direct materials pounds 32,700 18,900 Beginning direct materials pounds 43,300 14,200 Cost per pound $3 $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 $12 $21 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $661,000 for product JB 50 and $363,000 for product JB 60, and administrative expenses of $545,000 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%. Prepare the sales budget for the year. DELEON INC. Sales Budget JB 50 JB 60 Total Expected unit sales Unit selling price $ $ Total sales $ $ $ LINK TO TEXT LINK TO TEXT Prepare the production budget for the year. DELEON INC. Production Budget JB 50 JB 60 : : LINK TO TEXT LINK TO TEXT Prepare the direct materials budget for the year. DELEON INC. Direct Materials Budget JB 50 JB 60 Total : : $ $ $ $ $ LINK TO TEXT LINK TO TEXT Prepare the direct labor budget for the year. (Round Direct labor time per unit answers to 1 decimal place, e.g. 52.5.) DELEON INC. Direct Labor Budget JB 50 JB 60 Total $ $ $ $ $ LINK TO TEXT LINK TO TEXT Prepare the budegeted multiple-step income statement for the year. (Note: income taxes are not allocated to the products). DELEON INC. Budgeted Income Statement JB 50 JB 60 Total $ $ $ $ $ $

Answer 1