Please show your work in excel with formulas. P21-2A Prepare sales, production,
ID: 2501485 • Letter: P
Question
Please show your work in excel with formulas.
P21-2A Prepare sales, production, direct materials, direct labor, and income statement budgets (LO 3,4), AP 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 Unit selling price 200,000 $25 400,000 $20 Production budget: Desired ending finished goods units Beginning finished goods units 30,000 25,000 15,000 10,000 Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds Cost per pound 30,000 40,000 S3 10,000 15,000 $4 Direct labor budget: 0.4 Direct labor time per unit Direct labor rate per hour 0.6 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, Income taxes are expected to be 30%Explanation / Answer
Deleon Inc All Amt in $ Details Product JB 50 Product JB 60 Total Sales Budget Sales Volume units 400,000 200,000 600,000 Units sales price 20 25 Sales Revenue budgeted 8,000,000 5,000,000 13,000,000 Production Budget Sales units 400,000 200,000 600,000 Add : Desired closing stock FG units 30,000 15,000 Less: Opening stock FG units 25,000 10,000 Prodcution of FG required units 405,000 205,000 610,000 Direct Materials Direct materials lb/per unit 2 3 Required DM for production lbs 810,000 615,000 1,425,000 Add:Desired ending stock DM lbs 30,000 10,000 Less: Opening stock DM lbs 40,000 15,000 Required purchase Direct Materials lbs 800,000 610,000 1,410,000 Cost per lb 3 4 Total Cost of Direct material purchase 2,400,000 2,440,000 4,840,000 Direct Labor Budget Direct labor time / unit 0.40 0.60 Direct labor rate per hr 12 12 Total Direct labor hrs required 162,000 123,000 285,000 Total budgeted direct labor cost 1,944,000 1,476,000 3,420,000 Income statement All Amt in $ Details Product JB 50 Product JB 60 Total Sales revenue 8,000,000 5,000,000 13,000,000 Less Cost of goods sold - Direct Materials consumed 2,400,000 2,400,000 4,800,000 @ $6 & $12 per unit Direct Labor consumed 1,920,000 1,440,000 3,360,000 @$4.8 & $7.2 per unit Manufacturing OH 880,000 160,000 1,040,000 @ $2 & $1 per unit Selling expenses 560,000 360,000 920,000 Admin expenses 540,000 340,000 880,000 Total Cost 11,000,000 Income before tax 2,000,000 Tax @30% 600,000 Net Income= 1,400,000