Problem 23-2A Deleon Inc._Budgets

Problem 23-2A

Deleon Inc. is preparing its annual budgets for the year ending December 31, 2014. Accounting assistants furnish the data shown below.

	Product JB 50	Product JB 60
Sales budget:
Anticipated volume in units	401,300	200,000
Unit selling price	$18.00	$23.00
Production budget:
Desired ending finished goods units	26,300	16,700
Beginning finished goods units	34,900	12,500
Direct materials budget:
Direct materials per unit (pounds)	3	4
Desired ending direct materials pounds	27,800	18,000
Beginning direct materials pounds	39,300	12,500
Cost per pound	$2	$3
Direct labor budget:
Direct labor time per unit	0.3	0.6
Direct labor rate per hour	$10	$10
Budgeted income statement:
Total unit cost	$10	$19

An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $657,400 for product JB 50 and $356,900 for product JB 60, and administrative expenses of $535,100 for product JB 50 and $335,700 for product JB 60. Income taxes are expected to be 20%.

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.)

12 years ago

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Problem 23-2A Deleon Inc._Budgets

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