29 Jun Question .png”> Problem 23-2A
Question
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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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