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
|
| Sales budget: |
|
|
|
|
| Anticipated volume in units |
|
403,300 |
|
204,100 |
| Unit selling price |
|
$21 |
|
$28 |
| Production budget: |
|
|
|
|
| Desired ending finished goods units |
|
26,800 |
|
17,900 |
| Beginning finished goods units |
|
34,400 |
|
13,000 |
| Direct materials budget: |
|
|
|
|
| Direct materials per unit (pounds) |
|
1 |
|
3 |
| Desired ending direct materials pounds |
|
34,400 |
|
20,000 |
| Beginning direct materials pounds |
|
42,100 |
|
13,000 |
| Cost per pound |
|
$3 |
|
$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 |
|
$13 |
|
$21 |
An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $663,800 for product JB 50 and $363,600 for product JB 60, and administrative expenses of $544,300 for product JB 50 and $343,100 for product JB 60. Income taxes are expected to be 30%.
Prepare the income statement budgets for the year.