Question

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 B 60 404,400 $22 201,000 327 28,800 34,100 17,600 13,100 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 34,600 41,100 16,400 13,000 $10 $13 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of 5662.000 for product 50 and 5365,000 for product 60, and administrative expenses of $545,000 for product 8 50 and $345,000 for product 18 50. Interest expense is $150.000 (not allocated to products). Income taxes are expected to be 30%

Answer 1

Deleon Inc.
Budgeted Income Statement
For the Year Ending Dec. 31, 2020
	JB50	JB60	Total
Sales	$ 8,896,800	$     5,427,000	$ 14,323,800
Less: Cost of Goods Sold	$ 5,257,200	$     4,422,000	$   9,679,200
Gross Profit	$ 3,639,600	$     1,005,000	$   4,644,600
Less: Operating Expenses:
Selling Expense	$    662,000	$       365,000	$   1,027,000
Administrative expense	$    545,000	$       345,000	$     890,000
Total Operating Expense	$ 1,207,000	$       710,000	$   1,917,000
Less: Interest Expense			$     150,000
Income Before Income Tax			$   2,577,600
Less:Income Tax Expense @30%			$ 773,280
Net Income/Loss			$ 1,804,320
Working Notes Support:
Sales = units sold * Unit sale price
Cost of goods sold = Units sold * Unit Cost
Products	JB50	JB60
Unit Sold	404,400	201,000
Selling Price	$22	$27
Unit Cost	$13	$22
Multiply unit cost with unit sold to get Cost of good sold