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Problem 23-2A Deleon Inc._Budgets

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Question;Problem 23-2A;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%.;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.)

 

Paper#37324 | Written in 18-Jul-2015

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