Prepare the sales budget for the year

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Reference no: EM133162312

Question - Ivanhoe 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

432,000

216,000

Unit selling price

$20

$25

Production budget:



Desired ending finished goods units

32,400

16,200

Beginning finished goods units

27,000

10,800

Direct materials budget:



Direct materials per unit (pounds)

2

3

Desired ending direct materials pounds

32,400

10,800

Beginning direct materials pounds

43,200

16,200

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 $604,800 for product JB 50 and $388,800 for product JB 60, and administrative expenses of $583,200 for product JB 50 and $367,200 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 20%.

Required - Prepare the sales budget for the year.

Reference no: EM133162312

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