A B C D E F G H 1 Chapter 8: Applying Excel 2 3 Data 4 5 Budgeted unit sales 6 7.Selling price per unit 8.Accounts receivable, beginning balance 9.Sales collected in the quarter sales are made 10.Sales collected in the quarter after sales are made 11 Desired ending finished goods inventory is 12 Finished goods inventory, beginning 13 Raw materials required to produce one unit 14.Desired ending inventory of raw materials is 15 Raw materials inventory, beginning 16 Raw material costs 17 Raw materials purchases are paid 18 and 20 19.Accounts payable for raw materials, beginning balance 21 Enter a formula into each of the cells marked with a ? below 22 Review Problem: Budget Schedules 23 Year 2 Quarter Year 3 Quarter 2 3 4 1 2 40,000 60,000 100,000 50,000 70,000 80,000 $8 $66,000 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 $0.00 per pound 60% in the quarter the purchases are made 40% in the quarter following purchase $81,500 24 Construct the sales budget 25 Year 2 Quarter Year 3 Quarter 1 2 3 4 1 2 26 Budgeted unit sales 27 Selling price per unit ? ? ? ? ? ? ? ? ? ? ? ? 28 Total sales ? ? ? ? 2 ? 30 Construct the schedule of expected cash collections Year 2 Quarter 31 2 3 4 Year 32 Beginning balance accounts receivable ? ? 33 First-quarter sales 34 Second-quarter sales ? 2 ? ? 2 40 35 Third-quarter sales 36 Fourth-quarter sales 37 Total cash collections 38 39 Construct the production budget 41 Budgeted unit sales 42 Add desired ending finished goods inventory 43 Total needs 44 Less beginning inished goods inventory 45 Required production in units ? ? ? 7 ? ? ? ? Year 2 Quarter Year 3 Quarter 1 2 3 4 Year 1 2 ? ? ? ? ? ? ? ? ? ? ? ? ? ? 2 ? ? ? ? ? ? ? 7 ? ? ? ? 2 46 47 Construct the raw materials purchases budget Year 2 Quarter Year 3 Quarter 48 2 3 4 Year 1 49 Required production (units) ? ? 7 ? ? ? 50 Raw materials required to produce one unit (pounds) ? 7 ? ? ? 51 Production needs (pounds) ? ? ? ? ? ? 52 Add desired ending inventory of raw materials (pounds) ? ? ? ? 2 53 Total needs (pounds) ? ? ? ? ? 54 Less beginning inventory of raw materials (pounds) ? ? ? 2 ? 55 Raw materials to be purchased (pounds) ? ? ? ? ? 56 Cost of raw materials per pound ? 2 2 ? 57 Cost of raw materials to be purchased 58 59 Construct the schedule of expected cash payments 60 61 Beginning balance accounts payable 62 First-quarter purchases 63 Second-quarter purchases 64 Third-quarter purchases 65 Fourth-quarter purchases 66 Total cash disbursements 67 ? ? ? " Year 2 Quarter 2 3 4 Year ? ? 2 2 ? ? ? ? ? 2 ? ? 2 Chapter 8 Form Piled in Chapter Form Chapter Formulas Chapter Requiremen Requirement 2: The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget: Year 2 Quarter Data 1 2 3 4 Year 3 Quarter 1 2 Budgeted unit sales 45,000 70,000 120,000 65,000 80,000 95,000 Selling price per unit $7 1 Chapter 8: Applying Excel 2 A B C D E F G A B C D E F G 1 Chapter 8: Applying Excel 2 3 Data 4 5 Budgeted unit sales 6 7 Selling price per unit 8 Accounts receivable, beginning balance 9 Sales collected in the quarter sales are made 1 2 3 4 45,000 70,000 120,000 65,000 $ 7 per unit $ 65,000 75% Year 3 Quarter 1 2 80,000 95,000 10 Sales collected in the quarter after sales are made 11 Desired ending finished goods inventory is 12 Finished goods inventory, beginning 13 Raw materials required to produce one unit 14 Desired ending inventory of raw materials is 25% 30% of the budgeted unit sales of the next quarter 12,000 units 5 pounds 10% of the next quarter's production needs 15 Raw materials inventory, beginning 16 Raw material costs 23,000 pounds $ 0.80 per pound 17 Raw materials purchases are paid 18 and 60% in the quarter the purchases are made 40% in the quarter following purchase 19 Accounts payable for raw materials, beginning balance $ 81,500 a. What are the total expected cash collections for the year under this revised budget? Expected cash collections for the year b. What is the total required production for the year under this revised budget? Total required production for the year _ c. What is the total cost of raw materials to be purchased for the year under this revised budget? Total cost of raw materials to be purchased for the year d. What are the total expected cash disbursements for raw materials for the year under this revised budget? Total expected cash disbursements for raw materials for the year