Question

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. Product JB 50 Product JB 60 Sales budget: Anticipated volume in units 400,000 200,000 Unit selling price $20 $25 Production budget: Desired ending finished goods units 30,000 15,000 Beginning finished goods units 25,000 10,000 Direct materials budget: Direct materials per unit (pounds) 2 3 Desired ending direct materials pounds 30,000 10,000 Beginning direct materials pounds 40,000 15,000 Cost per pound $3 $4 Direct labor budget: Direct labor time per unit 0.4 0.6 Direct labor rate per hour $12 $12 Budgeted income statement: Total unit cost $13 $20 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $560,000 for product JB 50 and $360,000 for product JB 60, and administrative expenses of $540,000 for product JB 50 and $340,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%. Collapse question part (a) Correct answer. Your answer is correct. Prepare the sales budget for the year. DELEON INC. Sales Budget Entry field with correct answer JB 50 JB 60 Total Expected unit sales Entry field with correct answer Entry field with correct answer Unit selling price $Entry field with correct answer $Entry field with correct answer Total sales $Entry field with correct answer $Entry field with correct answer $Entry field with correct answer Click if you would like to Show Work for this question: Open Show Work SHOW ANSWER LINK TO TEXT LINK TO TEXT Attempts: 4 of 5 used Collapse question part (b) Correct answer. Your answer is correct. Prepare the production budget for the year. DELEON INC. Production Budget Entry field with correct answer JB 50 JB 60 Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer: Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer: Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Click if you would like to Show Work for this question: Open Show Work SHOW ANSWER LINK TO TEXT LINK TO TEXT Attempts: 4 of 5 used Collapse question part (c) Correct answer. Your answer is correct. Prepare the direct materials budget for the year. DELEON INC. Direct Materials Budget Entry field with correct answer JB 50 JB 60 Total Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer: Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer: Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer $Entry field with correct answer $Entry field with correct answer Entry field with correct answer $Entry field with correct answer $Entry field with correct answer $Entry field with correct answer Click if you would like to Show Work for this question: Open Show Work SHOW ANSWER LINK TO TEXT LINK TO TEXT Attempts: 4 of 5 used Collapse question part (d) Prepare the direct labor budget for the year. (Round Direct labor time per unit answers to 1 decimal place, e.g. 52.7.) DELEON INC. Direct Labor Budget JB 50 JB 60 Total $ $ $ $ $

Answer 1