Question

Sheffield 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 403,200 203,400 $22 $28 26,700 19,700 32,500 11,400 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 2. 19,500 34,300 44,300 11,200 $3 $3 0.4 0.6 Direct labor rate per hour $12 $12 Budgeted income statement: Total unit cost $13 $13 $21 $21 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $663,000 for product JB 50 and $364,000 for product JB 60, and administrative expenses of $542,000 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%.

Answer 1

Answer

--Requirement asked

Production Budget
For the year ending 31 Dec 2017
	JB 50	JB 60
Expected unit sales	403,200	203,400
Add: Desired ending finished goods	26,700	19,700
Total units needed	429,900	223,100
Less: Beginning finished goods units	32,500	11,400
Units to be produced (or Budgeted Production)	397,400	211,700