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Sandhill Ins. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants furnish the following:

Product JB 50 Product JB 60

Sales budget:

Anticipated volume in units 392,000 196,000

Unit selling price $20 $25

Production budget:

Desired ending finished goods units 29,400 12,700

Beginning finished goods units 24,500 9,800

Direct Materials budget:

Direct materials per unit (pounds) 2 3

Desired ending direct materials pounds 29,400 9,800

Beginning direct material pounds 39,200 14,700

Cost per pound $3 $4

Direct labor budget:

Direct labor time per unit 0.40 0.60

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 $548,800 for product JB 50 and $352,800 for product JB 60, and administrative expenses of $529,200 for product JB 50 and $333,200 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

Sandhill Inc. Sales budget

JB 50 JB 60 Total

b. Prepare the production budget for the year

Sandhill Inc. Production budget

JB 50 JB 60

c. Prepare the direct materials budget for the year

Sandhill Inc. Direct Materials Budget

JB 50 JB 60 Total

d. Prepare the direct budget for the year. (round direct labor time per unit answers to 1 decimal place e.g. 52.5.)

Sandhill Inc. Direct labor budget

JB 50 JB 60 Total

e. Prepare the budgeted multiple step income statement for the year (note: income taxes are not allocated to the product.

Sandhill Inc. Budgeted Income Statement

JB 50 JB 60 Total

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