1. Comprehensive budgeting
Need Help Writing an Essay?
Tell us about your assignment and we will find the best writer for your paper.
Get Help Now!The balance sheet of Williams Company as of December 31, 20X8, follows.
WILLIAMS COMPANY
Balance Sheet
December 31, 12X8
Assets
Cash
$4,595
Accounts receivable
10,000
Finished goods (575 units x $7.00)
4,025
Direct materials (2,760 units x $0.50)
1,380
Plant & equipment
$50,000
Less: Accumulated depreciation
10,000
40,000
Total assets
$60,000
Liabilities & Stockholders’ Equity
Accounts payable to suppliers
$14,000
Common stock
$25,000
Retained earnings
21,000
46,000
Total liabilities &. stockholders’ equity
$60,000
The following information has been extracted from the firm’s accounting records:
1. All sales are made on account at $20 per unit. Sixty percent of the sales are collected in the month of sale; the remaining 40% are collected in the following month. Forecasted sales for the first five months of 20X9 are: January, 1,600 units,- February, 1,700 units; March, 1,900 units; April, 2,100 units; May, 2,200 units.
2. Management wants to maintain the finished goods inventory at 30% of the following month’s sales.
3. Williams uses four units of direct material in each finished unit. The direct material price has been stable and is expected to remain so over the next six months. Management wants to maintain the ending direct materials inventory at 60% of the following month’s production needs.
4. Seventy percent of all purchases are paid in the month of purchase; the remaining 30% are paid in the subsequent month.
5. Williams’ product requires 30 minutes of direct labor time. Each hour of direct labor costs $9.
Instructions:
a. Rounding computations to the nearest dollar, prepare the following for January through March:
1) Sales budget
2) Schedule of cash collections
3) Production budget
4) Direct material purchases budget
5) Schedule of cash disbursements for material purchases
6) Direct labor budget
b. Determine the balances in the following accounts as of March 31:
1) Accounts Receivable
2) Direct Materials
3) Accounts Payable
Get Quick Assignment Writing Help – No Plagiarism Guarantee!
onlineessayshub.com is one of the Online assignment writing service websites that provide university students with original and quality academic scholarship essays, personal statements, research proposals, essays, term papers, admission essays, annotated bibliographies, reports, research papers, projects, presentations, dissertation, theses, movie reviews, Book reviews, application papers, among others.
Expert Essay Writing to Cover All Your Writing Needs!
