3. AP Deleon Inc. is preparing its annual budgets for the year ending December 31, 2020. Accounting assistants furnish the data shown below. Product JB Product JB 50 60 Sales budget: Anticipated volume in units 400,000 200,000 Unit selling price $20 $25 Production budget: Desired ending finished goods units 30,000 15,000 Beginning finished goods units 25,000 10,000 Direct materials budget: Direct materials per unit (pounds) 3 Desired ending direct materials pounds 30,000 10,000 Beginning direct materials pounds 40,000 15,000 the Patio $3 Cost per pound $4 Direct labor budget: peve Direct labor time per unit 0.6 were 0.4 Direct labor rate per hour $12 $12 Budgeted income statement: Total unit cost $13 $20 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $560,000 for product JB 50 and $360,000 for product JB 60, and administrative expenses of $540,000 for product JB 50 and $340,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%. Instructions the following budgets for the year. Show data for each product. Quarterly Prepare budgets should not be prepared. a. Sales. b. Production. C. Direct materials. d. Direct labor. e. Multiple-step income statement (Note: income taxes are not allocated to the products). Printed at Camden County College 2.
3. AP Deleon Inc. is preparing its annual budgets for the year ending December 31, 2020. Accounting assistants furnish the data shown below. Product JB Product JB 50 60 Sales budget: Anticipated volume in units 400,000 200,000 Unit selling price $20 $25 Production budget: Desired ending finished goods units 30,000 15,000 Beginning finished goods units 25,000 10,000 Direct materials budget: Direct materials per unit (pounds) 3 Desired ending direct materials pounds 30,000 10,000 Beginning direct materials pounds 40,000 15,000 the Patio $3 Cost per pound $4 Direct labor budget: peve Direct labor time per unit 0.6 were 0.4 Direct labor rate per hour $12 $12 Budgeted income statement: Total unit cost $13 $20 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $560,000 for product JB 50 and $360,000 for product JB 60, and administrative expenses of $540,000 for product JB 50 and $340,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%. Instructions the following budgets for the year. Show data for each product. Quarterly Prepare budgets should not be prepared. a. Sales. b. Production. C. Direct materials. d. Direct labor. e. Multiple-step income statement (Note: income taxes are not allocated to the products). Printed at Camden County College 2.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 4PB
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