Principles of Managerial Account
Print by: Gregg Wolfe
AC202:AC202DLAF1A2018 Principles of Managerial Account in / AC202 – Chapter 21
Assignment
*Problem 21-2A (Part Level Submission)
Deleon Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting
assistants furnish the data shown below.
Product
JB 50
Product
JB 60
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 Direct labor budget: Direct labor time per unit Direct labor rate per hour Budgeted income statement: Total unit cost |
404,400 $23 |
202,600 $28 |
| 27,300 34,700 |
19,000 13,000 |
|
| 2 34,200 44,400 $3 |
2 19,400 12,000 $3 |
|
| 0.4 $10 |
0.6 $10 |
|
| $14 | $22 |
An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and
administrative expense budget. The latter shows selling expenses of $663,000 for product JB 50 and
$361,000 for product JB 60, and administrative expenses of $544,000 for product JB 50 and
$343,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes
are expected to be 30%.
*(a)
Your answer is correct.
Prepare the sales budget for the year.
DELEON INC.
Sales Budget
JB 50 JB 60 Total
Expected unit sales
For the Year Ending December 31, 2017
404400 202600
Attempts: 2 of 3 used
Attempts: 3 of 3 used
Unit selling price
$ $
Total sales $ $ $
*(b)
Your answer is correct.
Prepare the production budget for the year.
DELEON INC.
Production Budget
JB 50 JB 60
:
:
*(c)
Your answer is correct.
Prepare the direct materials budget for the year.
DELEON INC.
Direct Materials Budget
JB 50 JB 60 Total
:
:
| $ 783800 3 |
$ 424600 3 |
23 28
9301200 5672800 14974000
For the Year Ending December 31, 2017
Expected Unit Sales 404400 202600
Add Desired Ending Finished Goods Units 27300 19000
Total Required Units 431700 221600
Less Beginning Finished Goods Units 34700 13000
Required Production Units 397000 208600
For the Year Ending December 31, 2017
Units to be Produced 397000 208600
Direct Materials per Unit 2 2
Total Pounds Needed for Production 794000 417200
Add Desired Ending Direct Materials 34200 19400
Total Materials Required 828200 436600
Less Beginning Direct Materials 44400 12000
Direct Materials Purchases Cost per Pound
Attempts: 2 of 3 used
Attempts: 1 of 3 used
$ $ $
*(d)
Your answer is correct.
Prepare the direct labor budget for the year. (Round Direct labor time per unit answers to 1
decimal place, e.g. 52.7.)
DELEON INC.
Direct Labor Budget
JB 50 JB 60 Total
| $ 158800 10 |
$ 125160 10 |
Total Required Direct Labor Hours Direct Labor Cost per Hour |
$ $ $
*(e)
Prepare the budgeted multiple-step income statement for the year. (Note: income taxes are not
allocated to the products).
DELEON INC.
Budgeted Income Statement
JB 50 JB 60 Total
| $ 9301200 5661600 |
$ 5672800 4457200 |
$ 14974000 10118800 |
Total Cost of Direct Materials Purchases 2351400 1273800 3625200
For the Year Ending December 31, 2017
Units to be Produced 397000 208600
Direct Labor Time per Unit .4 .6
Total Direct Labor Cost 1588000 1251600 2839600
3639600 1215600 4855200
663000 361000 1024000
544000 343000 887000
1207000 704000 1911000
Attempts: 0 of 3 used
$ $
$
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