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






     Unit selling price






Production budget:


     Desired ending finished goods units






     Beginning finished goods units






Direct materials budget:


     Direct materials per unit (pounds)






    Desired ending direct materials pounds






     Beginning direct materials pounds






     Cost per pound






Direct labor budget:


     Direct labor time per unit






     Direct labor rate per hour






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 $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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