Reference no: EM131089949
As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 2017, the following tentative trial balance as of December 31, 2016, is prepared by the Accounting Department of Regina Soap Co.:
Cash .............................................................85000
Accounts Receivable...............................................125600
Finished Goods ...................................................69300
Work in Process ...................................................32500
Materials .........................................................48900
Prepaid Expenses .................................................2600
Plant and Equipment ..............................................325000
Accumulated Depreciation-Plant and Equipment .......156200
Accounts Payable .................................................62000
Common Stock, $10 par .......................................180000
Retained Earnings ................................................290700
688900 688900
$688,900 180,000 290,700 $688,900 Factory output and sales for 2017 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, 2017, are expected to remain unchanged from the balances at the beginning of the year.
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