P23-2A Deleon Inc. is preparing its annual budgets for the year ending December 31, 2014.
P23-2A 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
Anticipated volume in
Unit selling price
finished goods units
Direct materials budget:
Direct materials per
Desired ending direct
Cost per pound
Direct labor budget:
Direct labor time per
Direct labor rate per
Budgeted income statement:
Total unit cost
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%.
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.)