Answer Happy

4 B D E F G H I J K 1 WILLIAM COMPANY BUDGETS 2 William Company creates a sales budget for the first six months of 2022. Expected sales for January 40,000 units; February=60,000 units, 3 March=80,000 units; April-70,000 units; May=60,000 units; and June=50,000 units. The price that William charges is $50 per unit. 4 Create a sales budget. 5 6 7 Jan Feb Mar Apr May Jun Total 8 Sales Budget Unit Sales 9 Price 10 Sales Revenue SO SO SO $0 $0 $0 11 12 13 William constructs a cash collections budget. The typical collection history indicates that cash is collected 60% in the month of sale and 40% is collected in the following month. Note: the sales in December were $1,800,000. 14 15 16 Cash Collections Budget Mar Apr May Jun Jan Feb $2,000,000 $3,000,000 $4,000,000 $3,500,000 $3,000,000 17 $2,500,000 18 Sales Revenue Collect 60% in month Collect 40% next month Total Cash Collections 19 720,000 $720,000 20 $0 so $0 $0 $0 21 22 23 William prepares a production budget to determine how many units of product need to be manufactured each month. William wishes to finish each month with enough ending inventory to cover 30% of the following month's sales. Note: the beginning inventory in January is 12,000 units, and the anticipated sales in July will be 40,000 units. 24 25 26 Production Budget Jan Feb Mar Apr May Jun July 40,000 27 Unit Sales 28 +Desired Ending Inventory_ Subtotal 29 0 0 0 0 0 30 -Beginning Inventory 12,000 0 0 0 0 31 Units to Produce -12,000 0 0 0 0 32 33 Note that the production budget consists of units only, no dollars. 34 35 William prepares a Direct Materials Budget 36 37 Each unit of product in the Production Budget requires 2 pounds of direct materials at a cost of $4.00 per pound. William wants to finish each month with 20% of the next month's direct material requirement on hand. Beginning inventory of materials in January is 20% of 92,000 pounds. required in July. 38 39 40 41 Direct Materials Budget Jan Feb 42 Units to Produce 43 44 45 46 Direct Material Per Unit Material Req. for Prod. + Desired End. Inv. Total Materials Required - Beginning Direct Mtls Pounds of Mtls to Purch. Cost Per Pound 47 48 49 50 Direct Materials to Purch. 51 52 53 Note: I have faced a few items for clarity. 0 0 0 18,400 $4.00 $0 0 0 0 0 0 $4.00 $0 0 0 0 Assume that 50,000 pounds of material will be Mar Apr May Jun 0 0 0 0 0 10,000 10,000 0 10,000 $4.00 0 0 $4.00 $0 $40,000 0 0 0 0 0 $4.00 $0 $0 0 0 0 0 $4.00 $0 July 50,000 LMNOPQ JFMAMJ 000000 اه اه اه ااا 000000 JFMAMJ 000000 000000 JFMAMJ 000000 000000 اه ااه ااها 100000 TU JFMAMJ 000000 000000 000000 000001 100000 000000 000000 R