CALCULATOR ? FUL SCREEN I PRINTER VERSION Problem 9-2A (Part Level Submission) D

Question

CALCULATOR ? FUL SCREEN I PRINTER VERSION Problem 9-2A (Part Level Submission) Deleon Inc. is preparing its annual budgets for the year ending December 31, 2017 BAC . Accounting assistants furnish the data shown below. Product Product JB 50 JB 60 Sales budget: Anticipated volume in units Unit selling price 402,800 203,900 $28 $23 Production budget: Desired ending finished goods units Beginning finished goods units 27,800 19,000 34,900 13,600 Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds Cost per pound 32,100 18,500 43,00014,600 53 $3 Direct labor budget: Direct labor time per unit Direct labor rate per hour 0.6 $12 0.4 $12 Budgeted income statement: Total unit cost $14 $21 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $661,000 for product 38 50 and $365,000 for product J8 60, and administrative expenses of $543,000 for product 3B 50 and $342,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%. ine. All Rights Reserved. A Drv son of 2atn.winAsansJn?

Explanation / Answer

Direct material budget :

JB 50 JB 60 Total Production units 395700 209300 Direct material per unit 2 3 Total pounds needed for production 791400 627900 Add: Desired ending inventory 32100 18500 Total 823500 646400 Less: Beginning direct material -43000 -14600 Direct material purchase 780500 631800 Cost per pound 3 3 Total cost of material purchase 2341500 1895400 4236900

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