Question - Deleon Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown below.
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Product
JB 50
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Product
JB 60
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Sales budget:
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|
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Anticipated volume in units
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403,200
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203,400
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Unit selling price
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$22
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$28
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Production budget:
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|
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Desired ending finished goods units
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26,700
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19,700
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Beginning finished goods units
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32,500
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11,400
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Direct materials budget:
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|
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Direct materials per unit (pounds)
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2
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2
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Desired ending direct materials pounds
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34,300
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19,500
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Beginning direct materials pounds
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44,300
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11,200
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Cost per pound
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$3
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$3
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Direct labor budget:
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|
|
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Direct labor time per unit
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0.4
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0.6
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Direct labor rate per hour
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$12
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$12
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Budgeted income statement:
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|
|
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Total unit cost
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$13
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$21
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An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $663,000 for product JB 50 and $364,000 for product JB 60, and administrative expenses of $542,000 for product JB 50 and $341,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%.
Prepare the sales budget for the year for JB50 and JB60.