Question

Culver Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown below. Product JB 50 Product JB 60 Sales budget:     Anticipated volume in units 404,400 202,600     Unit selling price $23 $28 Production budget:     Desired ending finished goods units 27,300 19,000     Beginning finished goods units 34,700 13,000 Direct materials budget:     Direct materials per unit (pounds) 2 2     Desired ending direct materials pounds 34,200 19,400     Beginning direct materials pounds 44,400 12,000     Cost per pound $3 $3 Direct labor budget:     Direct labor time per unit 0.4 0.6     Direct labor rate per hour $10 $10 Budgeted income statement:     Total unit cost $14 $22 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $663,000 for product JB 50 and $361,000 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%.

(a) Prepare the sales budget for the year. CULVER INC. Sales Budget For the Year Ending December 31, 2017December 31, 2017For the Quarter Ending December 31, 2017 JB 50 JB 60 Total Expected unit sales Unit selling price $ $ Total sales $ $ $

Answer 1

(a)
CULVER INC.
Sales Budget
For the year ending December 31, 2017
	JB 50	JB 60	Total
Expected unit sales	404400	202600
Unit selling price	23	28
Total sales	9301200	5672800	14974000