Current Assets

Property, Plant, and Equipment

Equipment

Less: Accumulated depreciation

Total assets

$$44,000$

$11,{000}_{?}$

$33,000$

Liabilities

Stockholders' Equity

Common stock

$$44,000$

Retained earnings

$27,500$

Total stockholders' equity

Total liabilities and stockholders' equity

Budgeted data for the year $2025$ include the following.

To meet sales requirements and to have $2,750$ units of finished goods on hand at December $31,2025,$ the production budget shows

$9,900$ required units of output. The total unit cost of production is expected to be $$18.$ Lily uses the first$-$in$,$ first$-$out $($FIFO$)$ inventory

costing method. Interest expense is expected to be $$3,850$ for the year. Income taxes are expected to be $20\%$ of income before incom

taxes. In $2025,$ the company expects to declare and pay an $$8,800$ cash dividend.

The company's cash budget shows an expected cash balance of $$27,704$ at December $31,2025.$ All sales and purchases are on

account. It is expected that $60\%$ of quarterly sales are collected in cash within the quarter and the remainder is collected in the

following quarter. Direct materials purchased from suppliers are paid $50\%$ in the quarter incurred and the remainder in the following

quarter. Purchases in the fourth quarter were the same as the materials used. In $2025,$ the company expects to purchase additional

equipment costing $$9,900.$ A total of $$4,550$ of depreciation expense on equipment is included in the budget data and split equally

between manufacturing overhead and selling and administrative expenses. Lily expects to pay $$8,800$ on the outstanding notes

payable balance plus all interest due and payable to December $31($included in interest expense $$3\mathrm{.}850,$ above$).$ Accounts payable at

December $31,2025,$ includes amounts due suppliers $($see above$)$ plus other accounts payable relating to manufacturing overhead of

$$7,920.$ Unpaid income taxes at December $31$ will be $$5,500.$

$($a$)$

Prepare a budgeted statement of cost of goods sold.