Blue 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 403,900 201,200
Unit selling price $23 $28
Production budget:
Desired ending finished goods units 26,400 16,700
Beginning finished goods units 32,900 12,600
Direct materials budget:
Direct materials per unit (pounds) 2 2
Desired ending direct materials pounds 33,900 18,900
Beginning direct materials pounds 42,700 11,000
Cost per pound $2 $3
Direct labor budget:
Direct labor time per unit 0.4 0.6
Direct labor rate per hour $11 $11
Budgeted income statement:
Total unit cost $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 $665,000 for product JB 50 and $363,000 for product JB 60, and administrative expenses of $544,000 for product JB 50 and $341,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%.
1. Prepare the production budget for the year.
DELEON INC.
Production Budget
JB 50 JB50 JB60 B60
2. Prepare the direct materials budget for the year.
DELEON INC.
Direct Materials Budget
JB 50 JB 60 Total
3. 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 Total
Prepare the budegeted multiple-step income statement for the year. (Note: income taxes are not allocated to the products). DELEON INC. Budgeted Income Statement
JB 50 JB 60 Total