Question

Deleon Inc. is preparing its annual budgets for the year ending December 31, 2020. Accounting assistants furnish the data shown below.

		Product JB 50		Product JB 60
Sales budget:
Anticipated volume in units		402,100		204,400
Unit selling price		$23		$27
Production budget:
Desired ending finished goods units		29,900		18,100
Beginning finished goods units		33,300		14,600
Direct materials budget:
Direct materials per unit (pounds)		1		2
Desired ending direct materials pounds		31,100		16,700
Beginning direct materials pounds		42,500		12,000
Cost per pound		$2		$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		$13		$21

An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $664,000 for product JB 50 and $365,000 for product JB 60, and administrative expenses of $545,000 for product JB 50 and $345,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%

Complete a Budgeted Income Statement

Answer 1

BUDGETED INCOME STATEMENT

sales	$92,48,300	$55,18,800	$1,47,67,100
closing stock
direct material	$62,200	$66,800	$1,29,000
finished goods	$6,87,700	$4,88,700	$11,76,400
Total Income	$99,98,200	$60,74,300	$1,60,72,500
opening stock
direct material	$85,000	$48,000	$1,33,000
finished goods	$7,65,900	$3,94,200	$11,60,100
purchase od direct material(Notes)	$7,74,600	$16,82,000	$24,56,600
Labour Cost	$14,35,320	$14,96,880	$29,32,200
Unit cost	$51,83,100	$43,65,900	$95,49,000
selling expenses	$6,64,000	$3,65,000	$10,29,000
administative expenses	$5,45,000	$3,45,000	$8,90,000
interest Expenes			150000
Total Expenes	$78,27,420	$65,72,780	$1,45,50,200
Profit Before Tax			$15,22,300
Tax @ 30%			$4,56,690
Budgeted Profit after Tax			$10,65,610