Sunland Inc. is preparing its annual budgets for the year ending December 31, 2025. Accounting assistants furnish the data shown below. Product JB 50 Product JB 60 Sales budget: Anticipated volume in units 480,000 240,000 Unit selling price $30 $35 Production budget: Desired ending finished goods units 36,000 18,000 Beginning finished goods units 30,000 12,000 Direct materials budget: Direct materials per unit (pounds) 2 3 Desired ending direct materials pounds 36,000 12,000 Beginning direct materials pounds 48,000 18,000 Cost per pound $3 $4 Direct labor budget: Direct labor time per unit 0.4 0.6 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 $672,000 for product JB 50 and $432,000 for product JB 60, and administrative expenses of $648,000 for product JB 50 and $408,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 20%. (a) Prepare the sales budget for the year. | E $ JB 50 SUNLAND INC. Sales Budget $ JB 60 Total

Sunland Inc. is preparing its annual budgets for the year ending December 31, 2025. Accounting assistants furnish the data shown below. Product JB 50 Product JB 60 Sales budget: Anticipated volume in units 480,000 240,000 Unit selling price $30 $35 Production budget: Desired ending finished goods units 36,000 18,000 Beginning finished goods units 30,000 12,000 Direct materials budget: Direct materials per unit (pounds) 2 3 Desired ending direct materials pounds 36,000 12,000 Beginning direct materials pounds 48,000 18,000 Cost per pound $3 $4 Direct labor budget: Direct labor time per unit 0.4 0.6 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 $672,000 for product JB 50 and $432,000 for product JB 60, and administrative expenses of $648,000 for product JB 50 and $408,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 20%. (a) Prepare the sales budget for the year. | E $ JB 50 SUNLAND INC. Sales Budget $ JB 60 Total

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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How do I prepare the selling and administrative expense budget for the quarter ended March 31, 20X1?
Current Attempt in Progress Sheridan Construction Company determines that 58000 pounds of direct materials are needed for production in July. There are 4200 pounds of direct materials on hand at July 1 and the desired ending inventory is 3000 pounds. If the cost per unit of direct materials is $5, what is the budgeted total cost of direct materials purchases for the month? ○ $296000. ○ $156000. O $284000. ○ $192000. Save for Later Attempts: 0 of 1 used Submit Answer
Am. 308.
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