Deleon Inc. is preparing its annual budgets for the year ending
December 31, 2014. Accounting assistants furnish the data shown below.
P23-2A Deleon Inc. is preparing its annual budgets for the year ending December 31, 2014. Accounting assistants furnish the data shown below.
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Product JB 50
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Product JB 60
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Sales budget:
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Anticipated volume in
units
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402,900
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200,700
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Unit selling price
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$21.00
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$24.00
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Production budget:
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Desired ending
finished goods units
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25,900
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12,400
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Beginning finished
goods units
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25,200
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11,200
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Direct materials budget:
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Direct materials per
unit (pounds)
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3
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4
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Desired ending direct
materials pounds
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29,800
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13,700
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Beginning direct
materials pounds
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36,200
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12,400
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Cost per pound
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$2
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$3
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Direct labor budget:
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Direct labor time per
unit
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0.4
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0.6
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Direct labor rate per
hour
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$10
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$10
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Budgeted income statement:
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Total unit cost
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$12
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$19
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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 $358,600 for product JB 60, and administrative expenses of
$543,700 for product JB 50 and $343,100 for product JB 60. Income
taxes are expected to be 30%.
Prepare the sales budget for the year.
Prepare the production budget for the year.
Prepare the direct
materials budget for the year.
Prepare the direct
labor budget for the year.
Prepare the
budgeted income statement for the year. (Note: Income taxes are not
allocated to the products.)
TUTORIAL PREVIEW
Prepare the sales budget for the year.
(a) DELEON INC.
Sales Budget
For the Year Ending December 31, 2014
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JB 50
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JB 60
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Total
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Expected unit
sales
Unit selling
price
Total sales
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402,900
X
$21
$8,460,900
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200,700
X
$24
$4,816,800
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$13,277,700
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