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 403,400 201,800
Unit selling price $22 $27
Production budget:
Desired ending finished
goods units 27,500 17,200
Beginning finished goods units 32,800 13,800
Direct materials budget:
Direct materials per unit (pounds) 2 3
Desired ending direct
materials pounds 31,100 17,800
Beginning direct materials
pounds 42,600 12,000
Cost per pound $2 $3
Direct labor budget:
Direct labor time per unit 0.3 0.6
Direct labor rate per hour $10 $10
Budgeted income statement:
Total unit cost $13 $22
An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget.
The latter shows selling expenses of $662,000 for product JB 50 and $361,000 for product JB 60, and administrative expenses of $541,000 for product JB 50 and $345,000 for product JB 60.
Interest expense is $150,000 (not allocated to products).
Income taxes are expected to be 30%.
Prepare the Sales Budget for the year.