Question

CALCULATOR PRINTER VERSION 4 Problem 9-2A (Part Level Submission) (Video) Deleon Inc. is preparing its annual budgets for the year ending December 31, 2020. Accounting assistants furnish the data shown below. Product JB 50 Product JB 60 202,100 401,100 $23 $27 26,100 31,800 19,800 14,200 Sales budget: Anticipated volume in units Unit selling price Production budget: Desired ending finished goods units Beginning finished goods units Direct materials budget: Ditect 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 33,800 41,000 18,000 14,400 $3 $3 0.4 $12 0.6 $12 $12 $22 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling exp $662,000 for product JB 50 and $363,000 for product JB 60, and administrative expenses of $544,000 for product 18 50 and $343,000 for product B 60. Interest is $150,000 (not allocated to products). Income taxes are expected to be 30% E] Your answer is correct. Prepare the sales budget for the year. · MacBook

Answer 1

DELEON INC.
Direct Materials Budget
For the Year Ending December 31, 2020
	JB 50	JB 60	Total
Units to be Produced	395400	207700
Direct Materials per Unit	2	2
Total Pounds Needed for Production	790800	415400
Add: Desired Ending Direct Materials	33800	18000
Total Materials Required	824600	433400
Less: Beginning Direct Materials	41000	14400
Direct Materials Purchases	783600	419000
Cost per Pound	3	3
Total Cost of Direct Materials Purchases	2350800	1257000	3607800
Workings:
	JB 50	JB 60
Production Budget
Expected Unit Sales	401100	202100
Add: Desired Ending Finished Goods Units	26100	19800
Total Required Units	427200	221900
Less: Beginning Finished Goods Units	31800	14200
Required Production Units	395400	207700