Problem 23-2a deleon inc._budgets | Accounting homework help
Problem 23-2A |
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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 |
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Sales budget: |
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Anticipated volume in units |
401,300 |
200,000 |
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Unit selling price |
$18.00 |
$23.00 |
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Production budget: |
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Desired ending finished goods units |
26,300 |
16,700 |
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Beginning finished goods units |
34,900 |
12,500 |
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Direct materials budget: |
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Direct materials per unit (pounds) |
3 |
4 |
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Desired ending direct materials pounds |
27,800 |
18,000 |
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Beginning direct materials pounds |
39,300 |
12,500 |
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Cost per pound |
$2 |
$3 |
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Direct labor budget: |
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Direct labor time per unit |
0.3 |
0.6 |
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Direct labor rate per hour |
$10 |
$10 |
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Budgeted income statement: |
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Total unit cost |
$10 |
$19 |
An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $657,400 for product JB 50 and $356,900 for product JB 60, and administrative expenses of $535,100 for product JB 50 and $335,700 for product JB 60. Income taxes are expected to be 20%.