As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January $1,20$Y$9,$ the following tentative trial balance as of December $31,20$Y$8,$ is prepared by the Accounting Department of Regina Soap Co$.$:

Account Title Debit Balance Credit Balance

Cash $$100,300$

Accounts Receivable $190,600$

Finished Goods $40,000$

Work in Process $26,700$

Materials $43,800$

Prepaid Expenses $3,200$

Plant and Equipment $445,300$

Accumulated Depreciation$$Plant and Equipment $$191,500$

Accounts Payable $139,800$

Common Stock, $$10$ par $300,000$

Retained Earnings $218,600$

Total $$849,900$ $$849,900$

Factory output and sales for $20$Y$9$ are expected to total $23,000$ units of product, which are to be sold at $$90$ per unit. The quantities and costs of the inventories at December $31,20$Y$9,$ are expected to remain unchanged from the balances at the beginning of the year.

Budget estimates of manufacturing costs and operating expenses for the year are summarized as follows:

Estimated Costs and Expenses

Line Item Description Fixed

$($Total for Year$)$ Variable

$($Per Unit Sold$)$

Cost of goods manufactured and sold:

Direct materials $\_$ $$23$

Direct labor $\_7$

Factory overhead:

Depreciation of plant and equipment $$23,000\_$

Other factory overhead $7,1004$

Selling expenses:

Sales salaries and commissions $82,60011\mathrm{.}5$

Advertising $69,000\_$

Miscellaneous selling expense $6,0002$

Administrative expenses:

Office and officers salaries $54,3005\mathrm{.}5$

Supplies $2,8001$

Miscellaneous administrative expense $1,4001\mathrm{.}5$

Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning balances. Federal income tax of $$164,200$ on $20$Y$9$ taxable income will be paid during $20$Y$9.$ Regular quarterly cash dividends of $$1$ per share are expected to be declared and paid in March, June, September, and December on $30,000$ shares of common stock outstanding. It is anticipated that fixed assets will be purchased for $$120,000$ cash in May.

Required:

Question Content Area

$1.$ Prepare a budgeted income statement for $20$Y$92.$ Prepare a budgeted balance sheet as of December $31,20$Y$9.$