Question

Deleon Inc. is preparing its annual budgets for the year ending December 31,2017.Accounting assistants furnish the data shown below. Product Product В 60 0 50 Sales budget Anticipated volume in units Unit selling price 401,600 203,100 $27 $21 Production budget Desired ending finished goods units Beginning finished goods units 27,100 17,000 31,10013,300 Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds Cost per pound 3,300 17,600 41,800 12,000 $3 Direct labor budget Direct labor time per unit Direct labor rate per hour 0.4 $11 0.6 $11 Budgeted income statement: Total unit cost $13 $21 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $662,000 for product 18 50 and $365,000 for product 38 60, and administrative expenses of $544,000 for product 38 50 and $345,000 for product 3B 60. Interest expense is $150,000 (not al ocated to products) Income taxes are expected to be 30%.

Answer 1

Production budget for the year is shown as follows:-

SHEFFIELD INC.

Production Budget

For the year Ending Dec 31, 2017 (in units)

	JB 50	JB 60
Budgeted sales in units	401,600	203,100
Add: Desired ending finished goods units	27,100	17,000
Total units required	428,700	220,100
Less: Beginning finished goods units	(31,100)	(13,300)
Total units required to be produced	397,600	206,800

Therefore total units required to be produced for JB 50 and JB 60 are 397,600 units and 206,800 units res[ectively.