Problem 23-2A Deleon Inc._Budgets

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Description

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Problem 23-2A

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Deleon Inc. is
preparing its annual budgets for the year ending December 31, 2014.
Accounting assistants furnish the data shown below.

Product JB 50

Product JB 60

Sales budget:

Anticipated volume in units

401,300

200,000

Unit selling price

$18.00

$23.00

Production budget:

Desired ending finished
goods units

26,300

16,700

Beginning finished goods
units

34,900

12,500

Direct materials budget:

Direct materials per unit
(pounds)

3

4

Desired ending direct materials
pounds

27,800

18,000

Beginning direct materials
pounds

39,300

12,500

Cost per pound

$2

$3

Direct labor budget:

Direct labor time per unit

0.3

0.6

Direct labor rate per hour

$10

$10

Budgeted income statement:

Total unit cost

$10

$19

An accounting assistant has prepared the detailed manufacturing overhead
budget and the selling and administrative expense budget. The latter
shows selling expenses of $657,400 for product JB 50 and
$356,900 for product JB 60, and administrative expenses of
$535,100 for product JB 50 and $335,700 for product JB 60.
Income taxes are expected to be 20%.

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Prepare the sales
budget for the year.

Prepare the
production budget for the year.

Prepare the direct
materials budget for the year.

Prepare the direct
labor budget for the year.

Prepare the
budgeted income statement for the year. (Note: Income taxes
are not allocated to the products.)

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