Managerial Accounting: P23-2A Deleon Inc. is preparing its annual budgets

Note: There are other versions of this problem (different amounts) so review and compare your homework question with our tutorial. Managerial Accounting 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 400,000 200,000 Unit selling price $20.00 $25.00 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 $3.00 $4.00 Direct labor budget: Direct labor time per unit 0.40 0.60 Direct labor rate per hour $12.00 $12.00 Budgeted income statement: Total unit cost $13.00 $20.00 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 $150,00 (not allocated to products). Income taxes are expected to be 30%. Instructions: Prepare the following budgets for the year. Show data for each product. Quarter 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.)