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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||||||
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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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||||||
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Direct materials per
unit (pounds)
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3
|
4
|
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Desired ending direct
materials pounds
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29,800
|
13,700
|
||||
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Beginning direct
materials pounds
|
36,200
|
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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||||||
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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%.
TUTORIAL PREVIEW
(a) DELEON INC.
Sales BudgetFor the Year Ending December 31, 2014
|
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JB 50
|
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
|
200,700
X
$24
$4,816,800
|
$13,277,700
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File name: P23-2A Deleon Inc.doc File type: xls PRICE: $7
