1 Chapter 8: Applying Excel Year 3 Quarter Year 2 Quarter 3 Data 80.000 40,000 60,000 100,000 50,00070.000 5 Budgeted unit sales 58 Selling price per unit $65,000 8 Accounts receivable, beginning balance 75% 25% Sales collected in the quarter sales are made 0 Sales collected in the quarter after sales are made 30% ofthe budgeted unit sales ofthe next quarter 1 Desired ending fnished goods inventory is 12.000 units 2 Finished goods inventory, beginning pounds 10% the next quarter, production needs 13 Raw materials required to produce one unit 14 Desired ending inventory of raw materials is 23,000 pounds . Raw materials inventory begnnrg 0.80 per pound 60% in the quarter the purchases are made 40% in the quarter following purchase 16 Raw matenial costs 7 Raw materials purchases are paid 19 Accounts payable for raw materials, beginning balance $81,500 20 21 Enter a formula into each of the cells marked with a 7 below 22 Review Problem: Budget Schedules Year 3 Quarter Year 2 Quarter 24 Construct the sales budgetr 25 26 Budgeted unit sales 27 Selling price per unt 28 Total sales Year 2 Quarter o-construct the schedule of expected cash collections 32 Beginning balance accounts receivable 3 First-quarter sales 4 Second-quarter sales 5 Third-quarter sales 6 Fourth-quarter sales 7 Total cash collections Year 3 Quarter Year 2 Quarter 9 Construct the production budget Year Budgeted unit sales 2Add desired ending finished goods inventory 3 Total needs Less beginning finished goods inventory Required production in units Year 3 Quarter Year 2 Quarter Construct the raw materials purchases budget Required production (units) Raw materials required to produce one unit (pounds) Production needs (pounds) Total needs (pounds) Less beginning inventory of raw materials (pounds) Raw materials to be purchased (pounds) Cost of raw materials per pound Cost of raw materials to be purchased Year 2 Quarter Construct the schedule of expected cash payments Year Beginning balance accounts payable First-quarter purchases Second-quarter purchases Fourth-quarter purchases Total cash disbursements