The problem is listed in the two images. Please help Master Budget ProjectEnterprise AccountingMaster Budget Project: The focus of this project is to create a master budget for the WilliamsCompany based on the company's industry outlook, recent company outcomes, and the company'sbusiness rules. You will create a master budget for Williams Company, including their cash budgetand the proforma financial statements.Master Budget Project DetailsThis project is a master budgeting project using the Williams Company scenario presented below.Complete your master budget using the provided Excel spreadsheet template (i.e., WilliamsCompany Template.xlsx) and submit the completed in this budget template using the submissionlink in this BBL folder.The Williams Company manufactures PVC piping in long pipes which a finish manufacturerpurchases and cuts to length for sale to retailers. Williams Company manufactures their pipingusing resin, sheets of raw PVC, and direct labor.The Williams Company has the following balance sheet as of December 31*.Balance Sheet on December 31AssetsCash$41700Accounts ReceivableRaw MaterialsFinished GoodsLandPlant and EquipmentLess: Accumulated DepreciationTotal AssetsLiabilities and Stockholders’ EquityAccounts Payable to SuppliersCommon StockRetained EarningsTotal Liabilities and Equity1920001022406440050000500000112000388000$838340$40000100000698340798340S838340The information shown below is extracted from the records of the Williams Company.1. The Williams Company has projected its unit sales for the next five months to be:MonthUnitsJanuaryFebruaryMarchAprilMay700080001000080007000 All sales are made on accounts receivable. Each unit of PVC sells for $60. Forty percent of allsales are collected in the month of the sale. The remaining 60% of the sales are collected in thefollowing month. May consider bad debts as non-existent.2.Williams Company has a management rule that at the end of each month the endingfinished goods inventory of PVC must be 20% of the following month's forecasted sales.Williams Company's finished goods inventory on December 31* consists of 1400 units ofPVC piping.3. In order to produce one unit of PVC pipe, the following units of raw PVC and resin are used.Raw MaterialUnitsRaw PVC5Resin3The price of raw PVC sheets is now $4.00 per unit. The price of resin is $2.80 per unit.Management desires to maintain ending raw materials inventories for raw PVC and resin at 25%of the next month's production needs. William Company's December 31 raw material holdingswere 18,000 units of raw PVC (at S4.00 per unit) and 10,800 units of resin (at S2.80 per unit).4.Seventy percent of all purchases (raw PVC and resin) are paid in the month of purchase.The remaining 30% is placed on an account payable and paid the following month.5.The production of PVC by Williams Company requires 30 minutes of direct labor time tocomplete. All labor costs are paid in the month incurred. Each hour of direct labor costsWilliams Company $24.Factory overhead is applied at the rate of $12 per direct labor hour. Actual overhead costsare paid as they are incurred. Monthly differences between applied and actual overheadcosts are expected to be negligible.6.7.Selling and Administrative expenses are $10,000 per month plus 10% of sales. All theseexpenses are paid in the month in which they are incurred.8.Plant and equipment depreciate at the rate of $12,000 per year. This depreciation is incurredevenly throughout the year and is included in the factory overhead costs mentioned earlier.

Standard costing is the costing method, where standard or expected costs are used in calculating…

Answered: Smpany business rules. You will create…

Smpany business rules. You will create a master budget for Williams Company, including their cash budget and the proforma financial statements.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter22: Budgeting

Section: Chapter Questions

Problem 5TIF: Static budget for a service company A hank manager of City Savings Rank Inc, uses the managerial...

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