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, 208, is prepared by the Accounting Department of Regina Soap Co Casti $119.400 Accounts Receivable 231,600 Finished Goods 48,600 Work in Process 32,400 Materials 53,300 Prepaid Expenses 3,900 Plant and Equipment 543,300 Accumulated Depreciation-plant and Equipment $233,600 Accounts Payable 175,100 Common Stock, 510 par 350,000 Retained Earnings 273,800 $1,032,500 $1,032,500 Factory output and sales for 2049 are expected to total 28,000 units of product, which are to be sold at $110 per unit. The quantities and costs of the inventories at December 31, 2049, 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 Fixed Variable (Total for Year) (Per Unit Sold) Cost of goods manufactured and sold: Direct materials $28 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 $28,000 8,700 5 Factory overhead: Depreciation of plant and equipment Other factory overhead Selling expenses Sales salaries and commissions Advertising Miscellaneous Selling expense 14 100,500 84,000 7,300 2 Administrative expenses 7 Office and officers salaries Supplies Miscellaneous administrative expense 66,100 3,400 1,800 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 $271,300 on 2049 taxable income wil be paid during 2049. Regular quarterly cash dividends of $1 per share are expected to be declared and paid in March, June, September, and December on 35,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for $147,000 cash in May. Required: 1. Prepare a budgeted income statement for 2019 Regina Soap Co. Budgeted Income Statement Regina Soap Co. Budgeted Income Statement For the Year Ending December 31, 2019 Sales 10,000 Cost of goods sold Direct materials 75,000 Direct labor 238.000 Factory overhead 1,416,700 X 2.700 X 11.300 X Cost of goods sold Gross profit Operating expenses Selling expenses Sales salaries and commissions Advertising Miscellaneous selling expense 2,900.00 BUD 14600X 1.505.00 X Total selling expenses Administrative expenses Office and officers salaries Supplies Miscellaneous administrative expense v Total administrative expenses Total operating expenses Income before Income tax Total operating expenses Income before income tax Income tax expense Net Income Feedback 4 M V V Use information from the expected sales, cost of goods manufactured and sold, and selling and administrative expenses 2. Prepare a budgeted balance sheet as of Deember 31, 2009, Regina Soap Co Budgeted Balance Sheet December 31, 2019 Assets Current assets: 118,800 x Cash Accounts receivable Inventories: Finished goods Work in process Materials Prepaid expenses Total Print Decke Previous Next Check My Work TOO 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 Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Feedback