OBJ. 4,5 As a preliminary to requesting budget estimates of sales, costs, and expenses for the year beginning January 1, 20Y4, the following tentative trial balance as of December 20Y3, is prepared by the Accounting Department of Regina Soap Co.: PR 22-5A Budgeted income statement and balance sheet et Work in Process Materials . . . . Prepaid Expenses . . .. Plant and Equipment 125,600 69,300 32,500 48,900 2,600 325,000 .. . $156,200 62,000 180,000 290,700 $688,900 Accounts Payable Common Stock, $10 par . . . . . $688,900 Factory output and sales for 20Y4 are expected to total 200,000 units of product, which are to be sold at $5.00 per unit. The quantities and costs of the inventories at December 5, of the year 20Y4, are expected to remain unchanged from the balances at the beginning Budget estimates of manufacturing costs and operating expenses for the yea summarized as follows: r are Chapter 22 Budgeting 1115 Estimated Costs and Expenses Variable (Per Unit Sold) Fixed (Total for Year) Cost of goods manufactured and sold: Direct materials $1.10 Factory overhead: Other factory overhead 12,000 0.40 Selling expenses: 46,000 64,000 6,000 0.45 Advertising 0.25 Miscellaneous selling expense . Office and officers salaries . . Miscellaneous administrative expense. Balances of accounts receivable, prepaid expenses, and accounts payable at the end Administrative expenses: 72,400 5,000 4,000 0.12 0.10 0.05 from the beginning balances. Federal Regular quar- March, on stock outstanding. It is the year are not expected to differ significantly income tax of $30,000 on 20Y4 taxable income will be paid during 20Y4. terly cash dividends of $0.15 per share are expected to be declared and paid in June, September, and December on 18,000 shares of comm anticipated that fixed assets will be purchased for $75,000 cash Instructions 1. Prepare a budgeted income statement for 20Y4. 2. Prepare a budgeted in May. balance sheet as of December 31, 20Y4, with supporting calculations