Reference no: EM133122831

Question - Blossom Inc. 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	408,000	204,000
Unit selling price	$20	$25
Production budget:
Desired ending finished goods units	30,600	15,300
Beginning finished goods units	25,500	10,200
Direct materials budget:
Direct materials per unit (pounds)	2	3
Desired ending direct materials pounds	30,600	10,200
Beginning direct materials pounds	40,800	15,300
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 $571,200 for product JB 50 and $367,200 for product JB 60, and administrative expenses of $550,800 for product JB 50 and $346,800 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 20%.

Prepare the sales budget for the year.

Prepare the production budget for the year.

Prepare the direct materials budget for the year.

Prepare the direct labor budget for the year.

Prepare the budgeted multiple-step income statement for the year. (Note: income taxes are not allocated to the products).