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Main.do?invoker-&takeAssignmentSessionLocator-assignment-take;&inprogress; false eBook Budgeted Income Statement and Balance Sheet As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginring January 1, 20Y9, the following tentative trial balance as of December 31, 206, is prepared by the Accounting Department of Regina Soap Ca : Cash Accounts Receivable Finithed Goods Work in Process 85,000 125,600 69,300 32,500 48,900 2,600 325,000 Materiais Prepaid Expenses Flant and Equipment Accumulated Depreciation-Plant and Equipment $156,200 52,000 80,000 299,700 ?) Accounts Payable Common Stock, $30 pa Retained Earnings Factory output and sales for 2019 e eupected to tai 200 oc nts af product, which are to be sals ar ss.00 per unit. The ouantees and costs of the inventorles at December 31. 209, are espected to remain utchanged from the balances at the beginning of the year. Butget estimates of manufacturing costs and opersing espenses for the year are summarized as follows Estimated Cests and Expenses Fixed Total for Year) (Per Unit Sold) Cest of goods manufactured and seld Direct materials Direct lsbor Pievious

Solution

1) Regina Soap Co.

Budgeted Income Statement

For the year ending December 31, 20Y9 (Amounts in $)

2) Total dividends paid in 20Y9 = Dividend per quarter*4 quarters

= (18,000 shares*$0.15)*4 = $10,800

  Regina Soap co.

Budgeted Balance Sheet

December 31, 20Y9 (Amounts in $)

Working Notes:-

1) Closing balance of cash is calculated as follows:-

Closing cash balance = Beg. Balance+Net Income+Depreciation-Dividends-Purchase of Equipment

= $85,000+$96,600+$40,000-$10,800-$75,000 = $135,800

Sales (200,000 units*$5) (A)			1,000,000
Cost of goods sold:
Direct materials (200,000 units*$1.10)		220,000
Direct labor (200,000 units*$0.65)		130,000
Factory Overhead [$52,000+(200,000*$0.40)]		132,000
Cost of goods sold (B)			482,000
Gross Profit (C = A-B)			518,000
Operating expenses:
Selling expenses:
Sales salaries and commissions [$46,000+(200,000*$0.45)]	136,000
Advertising	64,000
Miscellaneous selling expenses [$6,000+(200,000 units*$0.25)]	56,000
Total selling expenses		256,000
Administrative expenses:
Office and officers salaries [$72,400+(200,000 units*$0.12)]	96,400
Supplies [$5,000+(200,000 units*$0.10)]	25,000
Miscellaneous administrative expense [$4,000+(200,000 units*$0.05)]	14,000
Total administrative expenses		135,400
Total operating expenses (D)			391,400
Income before income tax (E = C-D)			126,600
Less: Income tax expense			(30,000)
Net Income			96,600