Panther Corporation appeared to be experiencing a good year. Sales in the first quarter were one-third ahead of last year, and the sales department predicted that this rate would continue throughout the entire year. The controller asked Janet Nomura, a summer accounting intern, to do draft forecast for the year and to analyze the differences from last year's results. She based the forecast on actual results obtained in the first quarter plus the expected costs of production to be completed in the remainder of the year. She worked with various department heads (production, sales, and so on) to get the necessary information. The results of these efforts follow:

PANTHER CORPORATION

Expected Account Balances for December 31, Year 2Cash$6,600Accounts receivable338,000Inventory (January 1, Year 2)288,000Plant and equipment610,000Accumulated depreciation$182,000Accounts payable198,000Notes payable (due within one year)218,000Accrued payables111,000Common stock460,000Retained earnings788,600Sales revenue2,580,000Other income72,000Manufacturing costsMaterials962,000Direct labor990,000Variable overhead721,000Depreciation38,000Other fixed overhead49,000MarketingCommissions116,000Salaries82,000Promotion and advertising216,000AdministrativeSalaries82,000Travel19,000Office costs54,000Income taxesDividends38,000$4,609,600$4,609,600

Adjustments for the change in inventory and for income taxes have not been made. The scheduled production for this year is 400,000 units, and planned sales volume is 340,000 units. Sales and production volume was 240,000 units last year. The company uses a full-absorption costing and FIFO inventory system and is subject to a 40 percent income tax rate. The actual income statement for last year follows:

PANTHER CORPORATION

Statement of Income and Retained Earnings

For the Budget Year Ended December 31, Year 1RevenuesSales revenue$1,920,000Other income81,000$2,001,000ExpensesCost of goods soldMaterials$521,000Direct labor571,000Variable overhead282,000Fixed overhead66,000$1,440,000Beginning inventory288,000$1,728,000Ending inventory288,000$1,440,000SellingSalaries$72,000Commissions78,000Promotion and advertising144,000294,000General and administrativeSalaries$74,000Travel15,500Office costs50,000139,500Income taxes51,0001,924,500Operating profit76,500Beginning retained earnings750,100Subtotal$826,600Less dividends38,000Ending retained earnings$788,600

Required:

Prepared a budgeted income statement and balance sheet.(Round "Cost per unit" to 2 decimal places. Do not round any other intermediate calculations.)