Sandhill Industries' balance sheet at December $31,2019,$ is presented below.

SANDHILL INDUSTRIES

Balance Sheet

December $31,2019$

Assets

Current Assets

Cash

Accounts receivable

Finished goods inventory

units$)$

$$7,500$

$73,500$

$25,720$

Total current assets

$106,720$

Property, Plant, and Equipment

Equipment

$$40,340$

Less: Accumulated depreciation

$30,100$

Liabilities and Stockholders' Equity

Liabilities

Notes payable

$$27,220$

Accounts payable

$47,250$

prepare

Sandhill Industries' balance sheet at December $31,2019,$ is presented below.

SANDHILL INDUSTRIES

Balance Sheet

December $31,2019$

Assets

Current Assets

Cash

Accounts receivable

$$7,500$

$73,500$

Finished goods inventory

units$)$

$25,720$

Total current assets

$106,720$

Property, Plant, and Equipment

Equipment

$$40,340$

Less: Accumulated depreciation

Total assets

$10,240,30,100$

$$136,820$

Liabilities and Stockholders' Equity

Liabilities

Notes payable

$$27,220$

Accounts payable

$47,250$

$$

$74,470$

Stockholders' Equity

$\backslash$table$[[$Common stock,$$34,840,],[$Retained earnings,$27,510,],[$Total stockholders' equity,,$62,350],[\backslash$table$[[$Total liabilities and$],[$stockholders$\text{'}$ equity$]],,$$$136,820$

$$

To meet sales requirements and to have $2,500$ units of finished goods on hand at December $31,2020,$ the production budget shows $9,000$ required units of output. The total unit cost of production is expected to be $$18.$ Sandhill uses the first$-$in$,$ first$-$out $($FIFO$)$ inventory costing method. Interest expense is expected to be $$3,500$ for the year. Income taxes are expected to be $40\%$ of income before income taxes. In $2020,$ the company expects to declare and pay an $$8,870$ cash dividend.

The company's cash budget shows an expected cash balance of $$5,880$ at December $31,2020.$ All sales and purchases are on account. It is expected that $60\%$ of quarterly sales are collected in cash within the quarter and the remainder is collected in the following quarter. Direct materials purchased from suppliers are paid $50\%$ in the quarter incurred and the remainder in the following quarter. Purchases in the fourth quarter were the same as the materials used. In $2020,$ the company expects to purchase additional equipment costing $$11,050.$$$9,047$ of depreciation expense on equipment is included in the budget data and split equally between manufacturing overhead and selling and administrative expenses. Sandhill expects to pay $$10,290$ on the outstanding notes payable balance plus all interest due and payable to December $31($included in interest expense $$3,500,$ above$).$ Accounts payable at December $31,2020,$ includes amounts due suppliers $($see above$)$ plus other accounts payable relating to manufacturing overhead of $$8,750.$ Unpaid income taxes at December $31$ will be $$6,270.$

$($a$)$

Prepare a budgeted statement of cost of goods sold.