Budgeted Balance Sheet
			Williams Company
Question			First Quarter
		End of January	End of Febraury	End of March	Quarter 1
Assets				amount
Cash
Accounts receivable
Finished goods inventory
Raw materials inventory
RAW PVC
RESIN
Land
Building and equipment
Less: Accummulated depreciation
Total assets
Liabilities & Stockholders' Equity
Accounts payable
Common Stock
Retained earnings
Total liabilities & Stockholders' Equity		$0	$0	$0

Assume the tax rate is 0%.

$41700 192000 102240 64400 50000 Balance Sheet on December 31st Assets Cash Accounts Receivable Raw Materials Finished Goods Land Plant and Equipment 500000 Less: Accumulated Depreciation 112000 Total Assets Liabilities and Stockholders' Equity Accounts Payable to Suppliers Common Stock 100000 Retained Earnings 698340 Total Liabilities and Equity 388000 $838340 $40000 798340 $838340 Selling and Administrative Expense Budget Williams Company First Quarter 1 PVC Unit Costs 2 Williams Company 3 First Quarter 4 5 Cost Element January-March 6 Raw materials Units per PVC Unit Price Cost per PVC pipe 7 RAW PVC 5.00 $4.00 $20.00 3 RESIN 3.00 $2.80 $8.40 Direct labor 0.50 $24.00 $12.00 LO Factory overhead (per direct ! 0.50 $12.00 $ 6.00 -1 Unit cost per PVC pipe $46.40 -2 January February March Quarter 1 Variable expenses Sales 420000 480000 600000 1500000 Selling and adminstrative expense pl 10.00% 10.00% 10.00% 10.00% Total variable selling and administra 42000 48000 60000 150000 Fixed expenses Fixed selling and administrative exp 10000 10000 10000 30000 Total selling and administrative expe 52000 58000 70000 180000 3 4 Cash Budget Williams Company First Quarter 4200 January February March -5 Overhead Budget -6 Williams Company -7 First Quarter 8 9 January February March Quarter 1 o Direct labor ho 3600 4800 12600 1 Applied factor $12 $12 $12 $12 -2 Factory overhe 43,200 50,400 57,600 151,200 -3 Less: included -1000 -1000 -1000 -3000 -4 Total factory o $42,200 $49,400 $56,600 $148,200 -5 -6 -7 $168,000 $192,000 360,000 $ $192,000 $252,000 444,000 $240,000 $288,000 $ 528,000 $ 8 -9 Beginning cash balance Add: Receipts Cash sales to customers Cash collected from accounts receivable Total available cash Less: Disursements Raw materials cash purchases Raw materials accounts payable purchases Direct labor Factory overhead Selling and administrative expense Income tax expense Total disbursements Excess (deficiency) of available cash over cash disbursements $113,316 $40,000 $86,400 $42,200 $52,000 $172,956 $48,564 $100,800 $49,400 $58,000 $181,902 $74,124 $115,200 $56,600 $70,000 0 1 2. 3 -4 $333,916 26,084 $ $429,720 14,280 $ $497,826 30,174 $ 5 April 7,800 5 39,000 January February March Quarter 1 Units to be produced 7,200 8,400 9,600 25,200 RAW PVC RAW PVC per unit 5 5 5 Units of RAW PVC needed for pro 36,000 42,000 48,000 126,000 Add: Desired ending RAW PVC in 10,500 12,000 9,750 9,750 Total RAW PVC units required 46,500 54,000 57,750 135,750 Less: Beginning RAW PVC Invento 18,000 10,500 12,000 18,000 RAW PVC materials purchase RAW PVC 28,500 43,500 45,750 117,750 Cost per unit of RAW PVC $4 $4 $4 Total cost of RAW PVC purchases $114,000 $174,000 $183,000 $471,000 May 8,000 1400 - 9,400 -1600 7,800 8,400 Quarter 1 April 25,200 7,800 - January February March Quarter 1 Expected unit sales 7,000 8,000 10,000 25,000 Unit selling price $60 $60 $60 $60 0 Total sales $420,000 $480,000 $ $600,000 $1,500,000 1 2 3 Production Budget in Units 4 Williams Company 5 First Quarter 6 7 January February March Quarter 1 April 8 Expected unit sales 7,000 8,000 10,000 25,000 9 Add: Desired ending fir 1600 2000 1600 1600 0 Total required units 8,600 10,000 11,600 26,600 1 Less: Beginning finishe -1,400 -1600 -2000 -1400 2 Required production 2 7,200 8,400 9,600 25,200 3 3 4 Notes 5 Desired ending invento 0% 6 of next month's expected sales 7 8 9 9 0 Direct Labor Budget 1 - Williams Company 2 First Quarter 3 4 January February March Quarter 1 5 Units to be produced 7,200 8,400 9,600 25,200 6 Direct labor time (hou 0.5 0.5 0.5 0.5 7 Total required direct la 3600 4200 4800 12600 8 Direct labor costs per 24 24 24 24 9 Total direct labor cost: 9 $86,400 $100,800 $115,200 $302,400 7,000 Note: Desired ending inventory 0% of next month's production needs 7,000 -1400 January February March 5,600 Units to be produced 7,200 9,600 RESIN RESIN per unit 3 3 3 Units of RESIN needed for produc 21,600 25,200 28,800 Add: Desired ending RESIN inven 6,300 7,200 5,850 Total RESIN units required 27,900 32,400 34,650 Less: Beginning RESIN inventory 10,800 6,300 7,200 RESIN materials purchase 17,100 26,100 27,450 Cost per unit of RESIN $2.80 $ 2.80 $2.80 Total cost of RESIN purchases $47,880 $73,080 $76,860 23,400 75,600 5,850 81,450 10,800 70,650 $ 197,820 0% Note: Desired ending inventory of next month's production needs