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, 20Y9, the following tentative trial balance as of December 31, 20Y8, is prepared by the Accounting Department of Regina Soap Co.:

Cash	$107,200
Accounts Receivable	199,400
Finished Goods	41,900
Work in Process	27,900
Materials	45,900
Prepaid Expenses	3,400
Plant and Equipment	537,100
Accumulated DepreciationPlant and Equipment			$231,000
Accounts Payable			168,400
Common Stock, $10 par			300,000
Retained Earnings			263,400
	$962,800		$962,800

Factory output and sales for 20Y9 are expected to total 26,000 units of product, which are to be sold at $110 per unit. The quantities and costs of the inventories at December 31, 20Y9, 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:

Budgeted Income Statement and Balance Sheet As a preliminary to request ng bulget estimates of sales, tests, and expenses for the fiscal year beginning January 1, 2019, the following tentative tried balance as of December 31, 2018, is prepared by the Accounting Department of Regine Soap Co.: Cash $107,200 Accounts Receivable Finished Goods Work in Process Materials Prepaid Expenses 199,400 41,900 27,900 45,900 3,400 537,100 $231,000 169,100 300,000 Plant and Equipment Accumulated Depreciation-Plant and Equipment Accounts Payable Common Stock, $10 par Retained Earrings 263,400 $962,800 $962,800 Factory output and sales for 2019 are expected to total 26,000 units of product, which are to be sold at $110 per unit. The quantities and costs of the inventeries at December 31, 2019, 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: Cost of goods manufactured and sold: Direct materials Estimated Costs and Expenses Fixed Variable (Total for (Per Unit Year) Sold) $28 8.5. Direct labor Factory overhead: Depreciation of plant and equipment $26,000 Other factory overticad 8,100 Selling expenses: Sales salaries and commissions 93,300 14 Advertising 70,000 Miscelaneous seling expense 6,800 2 Administrative expenses: Office and officers salari Supplies Miscelaneous administrative expense 51,400 7 1 1.5 3,100 1,500 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 $251,900 on 2015 taxable income will be paid during 2015. 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 $145,000 cash in May.