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Deleon Inc. is preparing its annual budgets for the year ending December 31, 2014. Accounting assistants furnish the data shown below.

An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $664,800 for product JB 50 and $363,300 for product JB 60, and administrative expenses of $545,000 for product JB 50 and $342,000 for product JB 60. Income taxes are expected to be 30%.

Product JB 50 Product JB 60 401,600 $22 204,500 $28 28,900 32,500 16,200 13,800 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 33,800 43,100 $3 17,800 13,700 0.3 $12 0.5 $12 $13 DELEON INC. Sales Budget For the Year Ending December 31, 2014 JB 50 JB 60 Total Expected unit sales 401,600 204,500 Unit selling price 28 Total sales 8,835,200 5,726,000 14,561,200 DELEON INC Production Budget For the Year Ending December 31, 2014 JB 50 JB 60 I 204,500 16,200 Expected Unit Sales Add Desired Ending Finished Goods Units Total Required Units Less Beginning Finished Goods Units 401,600 28,900 430,500 32,500 398,000 220,700 13,800 Required Production Units 206,900 DELEON INC Direct Materials Budget For the Year Ending December 31, 2014 JB 50 JB 60 Total Units to be produced 398,000 206,900 Direct Materials per Unit 796,000 620,700 Total Pounds Needed for Production Add Desired Ending Direct Materials 1-26-2-22- 33,800 20-20-20- 17,800 Total Materials Required 829,800 638,500 13,700 ess Beginning Direct Materials 43,100 Direct Materials Purchases 786,700 624,800 Cost per Pound Total Cost of Direct Materials Purchases 2.350,100 2,499,200 4,859,300 DELEON INC. Direct Labor Budget For the Year Ending December 31, 2014 JB 50 JB 60 398,000 Units to be produced Direct Labor Time per Unit Total Required Direct Labor Hours 206,900 0.5 119,400 103,450 Direct Labor Cost per Hour Total Direct Labor Cost 1,432,800 1,241,400 2,674,200 DELEON INC. Budgeted Income Statement For the Year Ending December 31, 2014 JB 50 JB 60 Total Sales 8,835,200 5,726,000 14,561,200 Cost of Goods Sold 5,220,800 T 4 ,294,500 1 9 ,515,300 Gross Profit 3,614,400 1,431,500 5,045,900 Operating Expenses 7 Selling Expenses 664,800 363,300 1,028,100 Administrative Expenses 545,000 342,000 887,000 Total Operating Expenses 1,209,800 705.300 1,915,100 Income before Income Taxes Income Tax Expense Net Income! Loss)

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