3. AP Deleon Inc. is preparing its annual budgets for the year ending December 31, 2020. Accounting assistants furnish the data shown below. Product JB Product JB 50 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) 3 Desired ending direct materials pounds 30,000 10,000 Beginning direct materials pounds 40,000 15,000 the Patio $3 Cost per pound $4 Direct labor budget: peve Direct labor time per unit 0.6 were 0.4 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%. Instructions the following budgets for the year. Show data for each product. Quarterly Prepare 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). Printed at Camden County College 2.
3. AP Deleon Inc. is preparing its annual budgets for the year ending December 31, 2020. Accounting assistants furnish the data shown below. Product JB Product JB 50 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) 3 Desired ending direct materials pounds 30,000 10,000 Beginning direct materials pounds 40,000 15,000 the Patio $3 Cost per pound $4 Direct labor budget: peve Direct labor time per unit 0.6 were 0.4 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%. Instructions the following budgets for the year. Show data for each product. Quarterly Prepare 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). Printed at Camden County College 2.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:3. AP Deleon Inc. is preparing its annual budgets for the year ending December 31,
2020. Accounting assistants furnish the data shown below.
Product JB
Product JB
50
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)
3
Desired ending direct materials
pounds
30,000
10,000
Beginning direct materials
pounds
40,000
15,000
the Patio
$3
Cost
per pound
$4
Direct labor budget:
peve
Direct labor time per unit
0.6
were
0.4
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%.
Instructions
the following budgets for the year. Show data for each product. Quarterly
Prepare
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).
Printed at Camden County College
2.
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