Budgeted Income Statement and Balance Sheet As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 2019, the following tentative trial balance as of December 31, 2018, is prepared by the Accounting Department of Regina Soap Co. Cash $114,000 Accounts Receivable 220,000 Finished Goods 46,200 Work in Process 30,800 Materials 50,600 Prepaid Expenses 3,700 Plant and Equipment 519,800 Accumulated Depreciation Plant and Equipment $223,500 Accounts Payable 199,500 Common Stock, $10 par 250,000 Retained Earnings 312,100 $985,100 $985,100 Factory output and sales for 2019 are expected to total 27,000 units of product, which are to be sold at $110 per unit. The quantities and costs of the inventories at December 31, 2019, are expected to remain unchanged from the balances at the beginning of the year. Budget estimates of vanufacturing costs and operating expenses for the year are summarized as follows: Estimated costs and Expenses Fixed Variable (Total for Year) (Per Unit Sold) Cost of goods manufactured and sold: Direct materials $28 Book Printem ut 1 Estimated costs and Expenses Fixed Variable (Total for Year) (Per Unit Sold) Cost of goods manufactured and sold: Direct materials $28 Direct labor 8.5 Factory overhead: Depreciation of plant and equipment $27,000 Other factory overhead 8,400 Selling expenses: Sales salaries and commissions 96,900 Advertising 81,000 Miscellaneous selling expense 7,000 2 Administrative expenses: Office and officers salaries 63,700 7 Supplies 3,200 1 Miscellaneous administrative expense 1,700 1.5 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 $261,600 on 2049 taxable income will be paid during 2019. Regular quarterly cash dividends of $1 per share are expected to be declared and paid in March, June, September, and ecember on 25,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for $140,000 cash in May. Required: 14 1. Prepare a budgeted income statement for 209. Regina Soap Co. Budgeted Income Statement Required 1. Prepare a budgeted income statement for 2019, Regina Soap Co. Budgeted Income Statement For the Year Ending December 31, 2019 Sales 114.000 x Cost of goods sold: Direct materials Direct labor Factory overhead Cost of goods sold I Gross pront Operating expenses: Selling expenses Sales salaries and commissions Advertising V Miscellaneous selling expense v Total selling expenses Administrative expenses office and officers salaries Supplies QoO QUO Miscellaneous administrative expense 1500k Printem Miscellaneous administrative expense Total administrative expenses Total operating expenses Income before income tax Income tax expense Net Income Feedback Check My Wor 2. Prepare a budgeted balance sheet as of December 31, 2049. Regina Soap Co. Budgeted Balance Sheet December 21, 20YD Assets Current assets: Cash Accounts receivable Inventories Finished goods Work in process Materials Accounts receivable Inventories: Finished goods Work in process Materials Prepaid expenses Total current assets Property, plant, and equipment: Plant and equipment Accumulated depreciation Total property, plant, and equipment Total assets Liabilities Current liabilities: Accounts payable v Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Feedback