1 Budgeted unt sales 40,000 60,000 3 100,000 50,000 70,000 2 80,000 $8 per unit $65,000 75% 25% 30% of the budgeted unit sales of the next quarter 12,000 units 5 pounds 10% of the next quarter's production needs 23,000 pounds $0.80 per pound 60% in the quarter the purchases are made 40% in the quarter following purchase $81,500 Selling price per unit Accounts receivable, beginning balance Sales collected in the quarter sales are made Sales collected in the quarter after sales are made Desired ending finished goods inventory is Finished goods inventory, beginning Raw materials required to produce one unit Desired ending inventory of raw materials is 5. Raw materials inventory, beginning 6. Raw material costs -7 Raw materials purchases are paid 18 and 19 Accounts payable for raw materials, beginning balance 20 21 Enter a formula into each of the cells marked with a 7 below 22 Review Problem: Budget Schedules 23 24 Construct the sales budget 25 26 Budgeted unit sales 27 Seling price per unit 28 Total sales 29 30 Construct the schedule of expected cash collections 31 32 Accounts receivable, beginning balance 33 First quarter sales 34 Second quarter sales 35 Third quarter sales 36 Fourth-quarter sales 37 Total cash collections 38 39 Construct the production budget 40 41 Budgeted unit sales 42 Add desired finished goods inventory 43 Total needs Year 2 Quarter 2 3 ? ? 2 Year 3 Quarter 2 ? 7 2 ? ? 7 ? ? ? ? ? ? Year 2 Quarter 2 Year ? 2 ? 2 2 ? 2 ? 7 2 7 Year 2 Quarter 3 Year 3 Quarter 2 Year 2 hone Total cash cobactions Construct the production budget Year 3 Quarter 2 1 7 4 Year 1 ? 7 Budgeted unt sales Add desired finished goods inventory Total needs Less beginning inventory Required production 6 7 Construct the raw materials purchases budget ? ? 7 7 ? Year 2 Quarter 2 3 ? ? 2 ? 7 2 ? ? ? ? ? ? ? ? 7 2 ? 7 7 7 ? 7 ? ? Year 3 Quarter 1 3 4 Year ? 7 ? ? ? 2 2 2 2 Year 2 Quarter 2 ? ? 7 ? 7 ? ? 2 2 ? ? 7 ? 2 ? ? 7 ? ? ? 7 ? 7 ? 2 ? ? ? ? 7 ? 7 ? ? ? 7 ? ? 7 49 Required production (units) 50 Raw materials required to produce one unit 51 Production needs (pounds) 52 Add desired ending inventory of raw materials (pounds) 53 Total needs (pounds) S4 Less beginning inventory of raw materials (pounds) 55 Raw materials to be purchased 56 Cost of raw materials per pound 57 Cost of raw materials to be purchased 58 59 Construct the schedule of expected cash payments 60 61 Accounts payable, beginning balance 62 First quarter purchases 63 Second-quarter purchases 64 Third quarter purchases 65 Fourth quarter purchases 66 Total cash disbursements 67 68 Year 2 Quarter 2 3 1 4 Year 2 2 ? ? ? 2 ? 2 ? ? ? ? 7 7