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Deleon Inc. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants furnish the data shown below. Sales budget: Anticipated volume in units Unit selling price Production budget: Desired ending finished goods units Beginning finished goods units Direct materials budget: Product JB 50 400,000 $20 Product JB 60 200,000 $25 30,000 15,000 25,000 10,000

Deleon Inc. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants furnish the data shown below. Sales budget: Anticipated volume in units Unit selling price Production budget: Desired ending finished goods units Beginning finished goods units Direct materials budget: Product JB 50 400,000 $20 Product JB 60 200,000 $25 30,000 15,000 25,000 10,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Prepare the budegeted multiple-step income statement for the year. (Note: income taxes are not allocated to the products). Sales Cost of Goods Sold Gross Profit Operating Expenses Selling Expenses Selling Expenses Administrative Expenses Total Operating Expenses Income before Income Taxes Interest Expense Income before Income Taxes Income Tax Expense Net Income/(Loss) DELEON INC. Budgeted Income Statement For the Year Ending December 31, 2022 JB 50 $ JB 60 $ Total 7:26 PM
Transcribed Image Text:Prepare the budegeted multiple-step income statement for the year. (Note: income taxes are not allocated to the products). Sales Cost of Goods Sold Gross Profit Operating Expenses Selling Expenses Selling Expenses Administrative Expenses Total Operating Expenses Income before Income Taxes Interest Expense Income before Income Taxes Income Tax Expense Net Income/(Loss) DELEON INC. Budgeted Income Statement For the Year Ending December 31, 2022 JB 50 $ JB 60 $ Total 7:26 PM
Deleon Inc. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants furnish the data shown below. Sales budget: Anticipated volume in units Unit selling price Production budget: Desired ending finished goods units Beginning finished goods units Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds Cost per pound A Direct labor budget: Direct labor time per unit Direct labor rate per hour Budgeted income statement: Total unit cost Product JB 50 400,000 $20 30,000 25,000 2 Product JB 60 200,000 30,000 40,000 $3 0.4 $12 $13 $25 15,000 10,000 3 10,000 15,000 $4 0.6 $12 $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 20%. 7:25
Transcribed Image Text:Deleon Inc. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants furnish the data shown below. Sales budget: Anticipated volume in units Unit selling price Production budget: Desired ending finished goods units Beginning finished goods units Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds Cost per pound A Direct labor budget: Direct labor time per unit Direct labor rate per hour Budgeted income statement: Total unit cost Product JB 50 400,000 $20 30,000 25,000 2 Product JB 60 200,000 30,000 40,000 $3 0.4 $12 $13 $25 15,000 10,000 3 10,000 15,000 $4 0.6 $12 $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 20%. 7:25
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