Problem 23-2a deleon inc._budgets | Accounting homework help

Problem 23-2A

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

Sales budget:

           

     Anticipated volume in units

 

401,300

   

200,000

 

     Unit selling price

 

$18.00

   

$23.00

 

Production budget:

           

     Desired ending finished goods units

 

26,300

   

16,700

 

     Beginning finished goods units

 

34,900

   

12,500

 

Direct materials budget:

           

     Direct materials per unit (pounds)

 

3

   

4

 

    Desired ending direct materials pounds

 

27,800

   

18,000

 

     Beginning direct materials pounds

 

39,300

   

12,500

 

     Cost per pound

 

$2

   

$3

 

Direct labor budget:

           

     Direct labor time per unit

 

0.3

   

0.6

 

     Direct labor rate per hour

 

$10

   

$10

 

Budgeted income statement:

           

     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%.







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