Question

Deleon 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		403,400		203,700
Unit selling price		$22		$27
Production budget:
Desired ending finished goods units		29,900		17,700
Beginning finished goods units		34,700		12,000
Direct materials budget:
Direct materials per unit (pounds)		1		2
Desired ending direct materials pounds		32,800		16,600
Beginning direct materials pounds		43,800		13,300
Cost per pound		$3		$3
Direct labor budget:
Direct labor time per unit		0.4		0.6
Direct labor rate per hour		$10		$10
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 JB 50 and $364,000 for product JB 60, and administrative expenses of $544,000 for product JB 50 and $343,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%.

Prepare the sales budget for the year.

DELEON INC. Sales Budget For the Quarter Ending December 31, 2017For the Year Ending December 31, 2017December 31, 2017
		JB 50		JB 60		Total
Expected unit sales
Unit selling price		$		$
Total sales		$		$		$

Prepare the production budget for the year.

DELEON INC. Production Budget December 31, 2017For the Quarter Ending December 31, 2017For the Year Ending December 31, 2017 For the Year Ending December 31, 2017December 31, 2017For the Quarter Ending December 31, 2017
		JB 50		JB 60
Direct Labor Time per UnitTotal Required UnitsDirect Materials PurchasesTotal Required Direct Labor HoursBeginning Finished Goods UnitsTotal Cost of Direct Materials PurchasesDirect Materials per UnitRequired Production UnitsBeginning Direct MaterialsDirect Labor Cost per HourTotal Pounds Needed for ProductionDesired Ending Direct MaterialsExpected Unit SalesTotal Materials RequiredCost per PoundDesired Ending Finished Goods UnitsTotal Direct Labor Cost Beginning Direct MaterialsBeginning Finished Goods UnitsCost per PoundDesired Ending Direct MaterialsDesired Ending Finished Goods UnitsDirect Labor Cost per HourDirect Labor Time per UnitDirect Materials per UnitDirect Materials PurchasesExpected Unit SalesRequired Production UnitsTotal Cost of Direct Materials PurchasesTotal Direct Labor CostTotal Materials RequiredTotal Pounds Needed for ProductionTotal Required Direct Labor HoursTotal Required Units
AddLess AddLess: Expected Unit SalesTotal Required UnitsTotal Materials RequiredRequired Production UnitsDirect Labor Time per UnitDirect Materials per UnitTotal Required Direct Labor HoursBeginning Direct MaterialsTotal Direct Labor CostCost per PoundDesired Ending Finished Goods UnitsDirect Materials PurchasesBeginning Finished Goods UnitsTotal Cost of Direct Materials PurchasesTotal Pounds Needed for ProductionDirect Labor Cost per HourDesired Ending Direct Materials Beginning Direct MaterialsBeginning Finished Goods UnitsCost per PoundDesired Ending Direct MaterialsDesired Ending Finished Goods UnitsDirect Labor Cost per HourDirect Labor Time per UnitDirect Materials per UnitDirect Materials PurchasesExpected Unit SalesRequired Production UnitsTotal Cost of Direct Materials PurchasesTotal Direct Labor CostTotal Materials RequiredTotal Pounds Needed for ProductionTotal Required Direct Labor HoursTotal Required Units
Expected Unit SalesTotal Direct Labor CostTotal Required UnitsDesired Ending Finished Goods UnitsCost per PoundTotal Cost of Direct Materials PurchasesTotal Pounds Needed for ProductionTotal Materials RequiredDesired Ending Direct MaterialsDirect Labor Time per UnitDirect Labor Cost per HourBeginning Finished Goods UnitsDirect Materials per UnitRequired Production UnitsTotal Required Direct Labor HoursBeginning Direct MaterialsDirect Materials Purchases Beginning Direct MaterialsBeginning Finished Goods UnitsCost per PoundDesired Ending Direct MaterialsDesired Ending Finished Goods UnitsDirect Labor Cost per HourDirect Labor Time per UnitDirect Materials per UnitDirect Materials PurchasesExpected Unit SalesRequired Production UnitsTotal Cost of Direct Materials PurchasesTotal Direct Labor CostTotal Materials RequiredTotal Pounds Needed for ProductionTotal Required Direct Labor HoursTotal Required Units
AddLess AddLess: Cost per PoundTotal Materials RequiredBeginning Finished Goods UnitsDirect Labor Cost per HourTotal Direct Labor CostDesired Ending Finished Goods UnitsRequired Production UnitsTotal Required Direct Labor HoursBeginning Direct MaterialsDirect Materials PurchasesDirect Labor Time per UnitTotal Pounds Needed for ProductionTotal Required UnitsTotal Cost of Direct Materials PurchasesDesired Ending Direct MaterialsExpected Unit SalesDirect Materials per Unit Beginning Direct MaterialsBeginning Finished Goods UnitsCost per PoundDesired Ending Direct MaterialsDesired Ending Finished Goods UnitsDirect Labor Cost per HourDirect Labor Time per UnitDirect Materials per UnitDirect Materials PurchasesExpected Unit SalesRequired Production UnitsTotal Cost of Direct Materials PurchasesTotal Direct Labor CostTotal Materials RequiredTotal Pounds Needed for ProductionTotal Required Direct Labor HoursTotal Required Units
Total Cost of Direct Materials PurchasesCost per PoundTotal Required UnitsDirect Labor Time per UnitDirect Materials per UnitBeginning Direct MaterialsTotal Direct Labor CostDesired Ending Direct MaterialsDesired Ending Finished Goods UnitsBeginning Finished Goods UnitsTotal Required Direct Labor HoursDirect Labor Cost per HourTotal Pounds Needed for ProductionExpected Unit SalesRequired Production UnitsTotal Materials RequiredDirect Materials Purchases Beginning Direct MaterialsBeginning Finished Goods UnitsCost per PoundDesired Ending Direct MaterialsDesired Ending Finished Goods UnitsDirect Labor Cost per HourDirect Labor Time per UnitDirect Materials per UnitDirect Materials PurchasesExpected Unit SalesRequired Production UnitsTotal Cost of Direct Materials PurchasesTotal Direct Labor CostTotal Materials RequiredTotal Pounds Needed for ProductionTotal Required Direct Labor HoursTotal Required Units

Answer 1

Prepare the sales budget for the year.

DELEON INC. Sales Budget For the Year Ending December 31, 2017
		JB 50		JB 60		Total
Expected unit sales		403400		203700
Unit selling price		$22		$27
Total sales		$8874800		$5499900		$14374700

Production Budget

For the year ended December 31,2017

	JB 50	JB 60
Expected unit sales	403400	203700
Add: Desired ending finished goods unit	29900	17700
Total required unit	433300	221400
Less: Beginning finished goods Unit	-34700	-12000
Required production unit	398600	209400