Deleon Inc. is preparing its annual budgets for the year ending December 31, 2020. Accounting assistants furnish the data shown below. ProductJB 50 ProductJB 60Sales budget: Anticipated volume in units 400,000 200,000 Unit selling price $20 $25Production budget: Desired ending finished goods units 30,000 15,000 Beginning finished goods units 25,000 10,000Direct materials budget: Direct materials per unit (pounds) 2 3 Desired ending direct materials pounds 30,000 10,000 Beginning direct materials pounds 40,000 15,000 Cost per pound $3 $4Direct labor budget: Direct labor time per unit 0.4 0.6 Direct labor rate per hour $12 $12Budgeted income statement: Total unit cost $13 $20An 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%. a. Prepare the sales budget for the year.DELEON INC.Sales Budgetchoose the accounting period JB 50 JB 60 Totalselect an opening name enter a number of units enter a number of units select an item select a closing name $enter a total for the row b. Prepare the production budget for the year.DELEON INC.Production Budgetchoose the accounting period JB 50 JB 60select an opening name enter a number of units select between addition and deduction : select an item select a summarizing line select between addition and deduction : select an item select a closing name enter a total amount enter a total amount c. Prepare the direct materials budget for the year.DELEON INC.Direct Materials Budgetchoose the accounting period JB 50 JB 60 Totalselect an opening name enter a number of units select an item select a summarizing line for the first part select between addition and deduction : select an item enter a number of pounds select a summarizing line for the second part select between addition and deduction : select an item select a summarizing line for the third part select an item $enter a dollar amount select a closing name $enter a total for the row

Budget: budget is an estimate prepared by the company to know its future goals and actions required…

Answered: Deleon Inc. is preparing its annual…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 3CE: Refer to Cornerstone Exercise 8.2 for the production budgets for practice balls and match balls....

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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 JB 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)	2	3
Desired ending direct materials pounds	30,000	10,000
Beginning direct materials pounds	40,000	15,000
Cost per pound	$3	$4
Direct labor budget:
Direct labor time per unit	0.4	0.6
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%.

a. Prepare the sales budget for the year.

DELEON INC. Sales Budget choose the accounting period
	JB 50	JB 60	Total
select an opening name	enter a number of units	enter a number of units
select an item
select a closing name			$enter a total for the row

b. Prepare the production budget for the year.

DELEON INC. Production Budget choose the accounting period
	JB 50	JB 60
select an opening name	enter a number of units
select between addition and deduction : select an item
select a summarizing line
select between addition and deduction : select an item
select a closing name	enter a total amount	enter a total amount

c. Prepare the direct materials budget for the year.

DELEON INC. Direct Materials Budget choose the accounting period
	JB 50	JB 60	Total
select an opening name	enter a number of units
select an item
select a summarizing line for the first part
select between addition and deduction : select an item		enter a number of pounds
select a summarizing line for the second part
select between addition and deduction : select an item
select a summarizing line for the third part
select an item	$enter a dollar amount
select a closing name			$enter a total for the row

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