1 2 3 4 1 2 Budgeted unit sales 40,000 60,000 100,000 50,000 70,000 80,000 Selling price per unit $8 per unit Accounts receivable, beginning balance $65,000 Sales collected in the quarter sales are made 75% Sales collected in the quarter after sales are made 25% Desired ending finished goods inventory is 30% of the budgeted unit sales of the next quarter Finished goods inventory, beginning 12,000 units Raw materials required to produce one unit 5 pounds Desired ending inventory of raw materials is 10% of the next quarter's production needs Raw materials inventory, beginning 23,000 pounds Raw material costs $0.80 per pound Raw materials purchases are paid 60% in the quarter the purchases are made and 40% in the quarter following purchase Accounts payable for raw materials, beginning balance $81,500 Enter a formula into each of the cells marked with a ? below Review Problem: Budget Schedules Construct the sales budget Year 2 Quarter Year 3 Quarter 1 2 3 4 1 2 Budgeted unit sales ? ? ? ? ? ? Selling price per unit ? ? ? ? ? ? Total sales ? ? ? ? ? ? Construct the schedule of expected cash collections Year 2 Quarter 1 2 3 4 Year Accounts receivable, beginning balance ? ? First-quarter sales ? ? ? Second-quarter sales ? ? ? Third-quarter sales ? ? ? Fourth-quarter sales ? ? Total cash collections ? ? ? ? ? Construct the production budget Year 2 Quarter Year 3 Quarter 1 2 3 4 Year 1 2 Budgeted unit sales ? ? ? ? ? ? ? Add desired finished goods inventory ? ? ? ? ? ? Total needs ? ? ? ? ? ? Less beginning inventory ? ? ? ? ? ? Required production ? ? ? ? ? ? Construct the raw materials purchases budget Year 2 Quarter Year 3 Quarter 1 2 3 4 Year 1 Required production (units) ? ? ? ? ? ? Raw materials required to produce one unit ? ? ? ? ? ? Production needs (pounds) ? ? ? ? ? ? Add desired ending inventory of raw materials (pounds) ? ? ? ? ? Total needs (pounds) ? ? ? ? ? Less beginning inventory of raw materials (pounds) ? ? ? ? ? Raw materials to be purchased ? ? ? ? ? Cost of raw materials per pound ? ? ? ? ? Cost of raw materials to be purchased ? ? ? ? ? Construct the schedule of expected cash payments Year 2 Quarter 1 2 3 4 Year Accounts payable, beginning balance ? ? First-quarter purchases ? ? ? Second-quarter purchases ? ? ? Third-quarter purchases ? ? ? Fourth-quarter purchases ? ? Total cash disbursements