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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 units401,100202,100 Unit selling price$23$27 Production budget: Desired ending finished goods units26,10019,800 Beginning finished goods units31,80014,200 Direct materials budget: Direct materials per unit (pounds)22 Desired ending direct materials pounds33,80018,000 Beginning direct materials pounds41,00014,400 Cost per pound$3$3 Direct labor budget: Direct labor time per unit0.40.6 Direct labor rate per hour$12$12 Budgeted income statement: Total unit cost$12$22 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $662,000 for product JB 50 and $363,000 for product JB 60, and administrative expenses of $544,000 for product JB 50 and $343,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%.
1. Prepare the sales budget for the year. DELEON INC. Sales Budget JB 50 JB 60 Total A It
2. Prepare the production budget for the year. DELEON INC. Production Budget JB 50 JB 60
3. Prepare the direct materials budget for the year. DELEON INC. Direct Materials Budget JB 50 JB 60 Total ta A LA ta
4. Prepare the direct labor budget for the year. (Round Direct labor time per unit answers to 1 decimal place, e.g. 52.5.) DELEON INC. Direct Labor Budget JB 50 JB 60 Total " | " DELEON INC. Budgeted Income Statement JB 50 JB 60 Total

Sagot :

Anthougoidn

Answer:

Deleon Inc.

                                               Product JB 50   Product JB 60         Total

1. Sales budget:

Anticipated volume in units            401,100            202,100             603,200

Unit selling price                                   $23                   $27

Sales value                               $9,225,300     $5,456,700       $14,682,000

2. Production budget:

Desired ending finished goods units  26,100              19,800           45,900

Anticipated sales volume in units      401,100            202,100         603,200

Units available for sale                      427,200            221,900          649,100

Beginning finished goods units           31,800              14,200           46,000

Production units required                 395,400           207,700          603,100

3. Direct materials budget:

Direct materials per unit (pounds)                     2                     2

Production materials needs (pounds)    790,800          415,400   1,206,200

Desired ending direct materials pounds 33,800            18,000         51,800

Total materials available                        824,600         433,400    1,258,000

Beginning direct materials pounds          41,000            14,400        55,400

Purchases of materials                          783,600         419,000    1,202,600

Cost per pound                                               $3                   $3

Cost purchases of materials           $2,350,800    $1,257,000 $3,607,800

4. Direct labor budget:

Direct labor time per unit                              0.4                  0.6

Direct labor rate per hour                             $12                 $12

Direct labor cost per unit                             $4.8               $7.2

Production units required                     395,400        207,700

Total direct labor cost                       $1,897,920   $1,496,440  $3,394,360

Explanation:

a) Data and Calculations:

                                               Product JB 50   Product JB 60         Total

Sales budget:

Anticipated volume in units            401,100            202,100             603,200

Unit selling price                                   $23                   $27

Sales value                               $9,225,300     $5,456,700       $14,682,000

Production budget:

Desired ending finished goods units  26,100              19,800           45,900

Anticipated sales volume in units      401,100            202,100         603,200

Units available for sale                      427,200            221,900          649,100

Beginning finished goods units           31,800              14,200           46,000

Production units required                 395,400           207,700          603,100

Direct materials budget:

Direct materials per unit (pounds)                     2                     2

Production materials needs (pounds)    790,800          415,400   1,206,200

Desired ending direct materials pounds 33,800            18,000         51,800

Total materials available                        824,600         433,400    1,258,000

Beginning direct materials pounds          41,000            14,400        55,400

Purchases of materials                          783,600         419,000    1,202,600

Cost per pound                                               $3                   $3

Cost purchases of materials           $2,350,800    $1,257,000 $3,607,800

Direct labor budget:

Direct labor time per unit                              0.4                  0.6

Direct labor rate per hour                             $12                 $12

Direct labor cost per unit                             $4.8               $7.2

Production units required                     395,400        207,700

Total direct labor cost                       $1,897,920   $1,496,440  $3,394,360

Non-relevant data (since income statement is not required)

Selling and Administrative Expense Budget:

                                                          Product JB 50    Product JB 60

Selling Expenses                                   $662,000         $363,000

Administrative expenses                      $544,000         $343,000

Interest expense is $150,000 (not allocated to products).

Income taxes are expected to be 30%.

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