As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 2013, the following tentative trial balance as of December 31, 2012, is prepared by the Accounting Department of Tahiti Blossom Soap Co.

Cash......................$ 100,000 Accounts Receivable....$112,300 Finished Goods..........$76,700 Work in Process.........$24,300 Materials..................$54,100 Prepaid Expenses.........$3,400 Plant and Equipment...$295,000 Accumulated Depreciation - Plant and Equipment...140,400 Accounts Payable........................................$59,000 Common Stock, $10 par..............................$210,000 Retained Earnings.........................................$256,400 --------- ------------ $124,800 $124,800 Factory output and sales for 2013 are expecteed to total $160,000 units of product, which are to be sold at $4.50 per unit. The quantities and costs of the inventories at December 31, 2013, 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 summarizedas follows:

Estimates Costs and Expenses Fixed Variable Costs of goods manufactured and sold: Direct Materials