Wolsey Industries Inc. expects to maintain the same inventories at the end of 20Y3 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows:

Estimated Fixed Cost			Estimated Variable Cost (per unit sold)
Production costs:
	Direct materials				$46
	Direct labor				40
	Factory overhead	$200,000			20
Selling expenses:
	Sales salaries and commissions	110,000			8
	Advertising	40,000
	Travel	12,000
	Miscellaneous selling expense	7,600			1
Administrative expenses:
	Office and officers' salaries	132,000
	Supplies	10,000			4
	Miscellaneous administrative expense	13,400			1
Total		$525,000			$120

It is expected that 21,875 units will be sold at a price of $160 a unit. Maximum sales within the relevant range are 27,000 units.

1. Prepare an estimated income statement for 20Y3.

Wolsey Industries Inc.
Estimated Income Statement
For the Year Ended December 31, 20Y3
Sales
Cost of goods sold:
Direct materials
Direct labor
Factory overhead
Total cost of goods sold
Gross profit
Expenses:
Selling expenses:
Sales salaries and commissions
Advertising
Travel	fill in the blank 40a17efc307801e_16
Miscellaneous selling expense	fill in the blank 40a17efc307801e_18
Total selling expenses		$fill in the blank 40a17efc307801e_19
Administrative expenses:
Office and officers' salaries	$fill in the blank 40a17efc307801e_21
Supplies	fill in the blank 40a17efc307801e_23
Miscellaneous administrative expense	fill in the blank 40a17efc307801e_25
Total administrative expenses		fill in the blank 40a17efc307801e_26
Total expenses			fill in the blank 40a17efc307801e_27
Operating income			$fill in the blank 40a17efc307801e_28