- Cash Accounts receivable Raw materials Finished goods Land Plant and equipment 2 Less: accumulated depreciation 3 4 Total assests 5 Accounts payable to suppliers Common Stock Retained Earnings 8 Total liabilities and equity 9 O PVC SALES 1 Budgeted PVC Sales (units) 2 January February 4 March 5 April 6 May 7 8 FINISHED GOODS INVENTORY: PVC Three-Month Master Budget Williams Company Balance Sheet December 31 Units 7,000 8,000 10,000 8,000 7,000 $41,700 192,000 102,240 64,400 50,000 $500,000 112,000 388,000 $838,340 $40,000 $100,000 698,340 798,340 $838,340 PVC Selling Price $60.00 % Sales Collected Month Sold 40% % Sales Collected Next Month 60% 9 Beginning Inventory 1,400 Ending Inventory % of Next Month's Sales 20% 1 2 PRODUCTION OF PVC RAW PVC RESIN DIRECT LABOR HOURS ONE UNIT OF PVC PRODUCED USING 5 3 0.5 4 PRICES OF RAW MATERIALS AND LABOR $4.00 $2.80 $24 5 5 RAW MATERIALS 7 Beginning Inventory Levels 18,000 10,800 B Ending Inventory % of Next Month's Production Needs 25.00% 25.00% $ 9 % Purchases Paid in Month of Purchase 70.00% 70.00% 100.00% % Purchases Paid in Month After Purchase 30.00% 30.00% 0.00% 1 2 FACTORY OVERHEAD Applied Per Direct Labor Hour 4 5 SELLING AND ADMINISTRATION $12.00 5 Total 7 8 PLANT AND EQUIPMENT $10,000.00 per month plus 9 Depreciates Evenly Included in Factory Overhead at $12000 per year Monthly Depreciation $1,000 10.00% of sales