a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 20Y4, the following tentative trial balance as of December 31, 20Y3, is prepared by the Accounting Department of Regina Soap Co. $85,000 counts Receivable 125,600 ished Goods 69.300 ork in Process 32.500 terials 48,900 epaid Expenses 2,600 ant and Equipment 325,000 ccumulated Depreciation-Plant and Equipment $156,200 counts Payable 62,000 ommon Stock, $10 par 180,000 etained Earnings 290,700 $688.900 $688,900 actory 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 31, 20Y4, are expected to remain unchanged from the balances at the beginning of the year. idoet estimates of manufacturing costs and operating expenses for the year are summarized as follows: Estimated Costs and Expenses Fixed Variable (Tetal for Year) (Per Unit Seld) Cost of poods manufactured and sold: $1.10 Direct materials 0.65 Direct labor Factory overhead: Depreciation of plant and equipment $40,000 12,000 0.40 Other factory overhead Selling expenses: 46,000 0.45 Sales salanes and commissions 64,000 Advertising 6,000 0.25 Miscellaneous selling expense Administrative experses: 72,400 0.12 Office and officers salaries 5,000 0.10 Supplies
a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 20Y4, the following tentative trial balance as of December 31, 20Y3, is prepared by the Accounting Department of Regina Soap Co. $85,000 counts Receivable 125,600 ished Goods 69.300 ork in Process 32.500 terials 48,900 epaid Expenses 2,600 ant and Equipment 325,000 ccumulated Depreciation-Plant and Equipment $156,200 counts Payable 62,000 ommon Stock, $10 par 180,000 etained Earnings 290,700 $688.900 $688,900 actory 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 31, 20Y4, are expected to remain unchanged from the balances at the beginning of the year. idoet estimates of manufacturing costs and operating expenses for the year are summarized as follows: Estimated Costs and Expenses Fixed Variable (Tetal for Year) (Per Unit Seld) Cost of poods manufactured and sold: $1.10 Direct materials 0.65 Direct labor Factory overhead: Depreciation of plant and equipment $40,000 12,000 0.40 Other factory overhead Selling expenses: 46,000 0.45 Sales salanes and commissions 64,000 Advertising 6,000 0.25 Miscellaneous selling expense Administrative experses: 72,400 0.12 Office and officers salaries 5,000 0.10 Supplies
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:2. Prepare a budgeted balance sheet as of December 31, 20Y4.
Regina Soap Co.
Budgeted Balance Sheet
December 31, 20Y4
Assets
Current assets:
Cash
Accounts receivable v
Inventories:
Finished goods V
Work in process v
Materials
Prepaid expenses v
Total current assets
Property, plant, and equipment:
Plant and equipment v
Less accumulated depreciation
Total assets
Liabilities
Current liabilities:
Accounts payable v
Stockholders' Equity
Common stock v
Retained earnings v
Total stockholders' equity
$1
24
Total liabilities and stockholders' equity
%24
Transcribed Image Text:Budgeted Income Statement and Balance Sheet
As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 20Y4, the following tentative trial balance as of December 31, 20Y3, is prepared by the Accounting Department of Regina Soap Co.:
Cash
$ 85,000
Accounts Receivable
125,600
Finished Goods
69,300
Work in Process
32,500
Materials
48,900
Prepaid Expenses
2,600
Plant and Equipment
325,000
Accumulated Depreciation-Plant and Equipment
$156,200
Accounts Payable
62,000
Common Stock, $10 par
180,000
Retained Earnings
290,700
$688,900
$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 31, 20Y4, are expected to remain unchanged from the balances at the beginning of the year.
Budget estimates of manufacturing costs and operating expenses for the year are summarized as follows:
Estimated Costs and Expenses
Fixed
Variable
(Total for Year) (Per Unit Sold)
Cost of goods manufactured and sold:
$1.10
Direct materials
0.65
Direct labor
Factory overhead:
$40,000
Depreciation of plant and equipment
12,000
0.40
Other factory overhead
Selling expenses:
46,000
0.45
Sales salaries and commissions
64,000
Advertising
6,000
0.25
Miscellaneous selling expense
Administrative expenses:
72,400
0.12
Office and officers salaries
5,000
0.10
Supplies
4,000
0.05
Miscellaneous administrative expense
eBook
differ significantly from the beginning balances. Federal income tax of $30,000 on 20Y4 taxable income will be paid during 20Y4. Regular quarterly cash dividends of so.15
Balances of accounts receivable, prepald expenses, and accounts payable at the end of the year are not expected
per share are expected to be declared and paid in March, June, September, and December on 18,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for $75,000 cash in May.
Required:
1. Prepare a budgeted income statement for 20Y4
Regina Soap Co.
Budgeted Income Statement
For the Year Ending December 31, 20Y4
Sales v
Cost of goods sold:
Direct materials v
Direct labor v
Factory overhead
Cost of goods sold
Gross profit
Operating expenses:
Selling expenses:
Sales salaries and commissions v
Advertising
Miscellaneous selling expense v
Total selling expenses
Administrative expenses:
Office and officers salaries
Supplies v
Miscellaneous administrative expense v
Total administrative expenses
Total operating expenses
Income before income tax
Income tax expense
Net income v
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,20Y4.
2. Prepare a budgeted balance sheet as of December
Regina Soap Co.
Budgeted Balance Sheet
December 31, 20Y4
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