a. What are the total expected cash collections for the year under this revised budget?

b. What is the total required production for the year under this revised budget?

c. What is the total cost of raw materials to be purchased for the year under this revised budget?

d. What are the total expected cash disbursements for raw materials for the year under this revised budget?

e. After seeing this revised budget, the production manager cautioned that due to the current production constraint, a complex milling machine, the plant can produce no more than 80,000 units in any one quarter. Is this a potential problem?

• Yes

• No

Year 2 Quarter Year 3 Quarter Data Budgeted unit sales Selling price per unit 5,000 70,000 115,000 60,000 85,000 95,000 $7 1 Chapter 8: Applying Excel 2 3 Data Year 3 Quarter 2 5 Budgeted unit sales 45,000 70,000 115,000 60,000 85,000 95,000 7Selling price per unit 8Accounts receivable, beginning balance 9Sales collected in the quarter sales are made 10.Sales collected in the quarter after sales are made 11Desired ending finished goods inventory is 12Finished goods inventory, beginning 13Raw 14Desired ending inventory of raw materials is 15 Raw materials inventory, beginning 16 Raw material costs 17.Raw materials purchases are paid 18and 19Accounts payable for raw materials, beginning balance 7 per unit $65,000 75% 25% 30% of the budgeted unit sales of the next quarter 12,000 units materials required to produce one unit 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