Question

Deleon Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown below. Product Product JB 50 JB 60 402,800 203,900 $23 $28 27,800 34,900 19,000 13,600 Sales budget: Anticipated volume in units Unit selling price Production budget: Desired ending finished goods units Beginning finished goods units Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds Cost per pound Direct labor budget: Direct labor time per unit Direct labor rate per hour Budgeted income statement: Total unit cost 2 32,100 43,000 $3 3 18,500 14,600 $3 - 0.4 $12 0.6 $12 $14 $21 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $661,000 for product JB 50 and $365,000 for product JB 60, and administrative expenses of $543,000 for product B 50 and $342,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%.

Answer 1

Direct Labour Budget JB 50 JB 60 Total 305700 209300 oni 0.4 0.6 158280 125580 renta Requered Production (in units) Direct Labour time Per unit Total Direct Labour hours needed. Direct labour raté per hair Total direct Labour Cost o $12 1899360 150 6960 3406320

DIRECT MATERIALS BUDGET JB 50 В со Total 395too 209300 3 Required production ein units) Less Raw Materials needed per vuit (Pounds Production needs pconds) Add:- Desired ending inventory of raw anaterials 791400 621 900 32.100 18500 646400 14600 6318oo 823500 Less:- Beggining inventory 43000 of direct maleries Direct materials Pounds) 750500 to be purchased cost per pound Cost of Direct materials $2341500 $1895400 $4236,900 P to be purchased.

FA a Sales Budget JB 50 ТВоо Total frepecled out 402800 203900 Sales voit selling 23 price Total sales 28 5709200 9 2 64400 14, 973600 Production Budget JB 50 JBGO 402800 203 900 Expect Estimated sales (in units) Add: - Desired closing Stock 19000 27800 430600 34900 395700 222900 Less: Estimated opening Stock Estimated Net Production 13600 +95 300