B 5 pounds 1 Chapter 8: Applying Excel 2 3 Data Year 2 Quarter Year 3 Quarter 4 1 2 3 4 1 2 5 Budgeted unit sales 40,000 60.000 100,000 50,000 70.000 80,000 6 7. Selling price per unit $8 per unit 8 . Accounts receivable, beginning balance $65,000 9. Sales collected in the quarter sales are made 75% 10. Sales collected in the quarter after sales are made 25% 11 . Desired ending finished goods inventory is 30% of the budgeted unit sales of the next quarter 12. Finished goods inventory, beginning 12.000 units 13. Raw materials required to produce one unit 14 . Desired ending inventory of raw materials is 10% of the next quarter's production needs 15 . Raw materials inventory, beginning 23,000 pounds 16 - Raw material costs $0.80 per pound 17. Raw materials purchases are paid 60% in the quarter the purchases are made 18 and 40% in the quarter following purchase 19. Accounts payable for raw materials, beginning balance $81,500 20 21 Enter a formula into each of the cells marked with a ? below 22 Review Problem: Budget Schedules 23 24 Construct the sales budget Year 2 Quarter Year 3 Quarter 25 1 2 3 3 4 1 2 26 Budgeted unit sales ? ? ? ? ? ? 27 Selling price per unit ? ? ? ? ? ? 28 Total sales ? ? ? ? ? ? 2 29 30 Construct the schedule of expected cash collections Year 2 Quarter 31 1 2 3 4 Year 32 Accounts receivable, beginning balance 2 ? 33 First-quarter sales ? ? ? 34 Second-quarter sales ? ? ? 35 Third-quarter sales ? ? ? 36 Fourth-quarter sales ? ? 37 Total cash collections ? ? ? 2 ? 38 1 3 4 Year N ? ? ? ? ? ? ? Year 2 Quarter 2 3 ? ? ? ? ? ? ? ? ? ? ? ? ? ? cclccola ? ? ? ? ? Year 3 Quarter 1 ? ? ? ? ? 1 2 3 4 Year N ? ? ? cla 38 39 Construct the production budget 40 41 Budgeted unit sales 42 Add desired finished goods inventory 43 Total needs 44 Less beginning inventory 45 Required production 46 47 Construct the raw materials purchases budget 48 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) 54 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 69 70 ? ? ? ? ? ? ? ? ? Year 2 Quarter 3 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Year 3 Quarter 1 ? ? ? ? ? ? ? ? ? ? ? ? Year 2 Quarter 3 1 2 3 4 Year N ? ? ? ? ? ? ? ? ? ? ? ? . ? ? ? ? ? ? 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: Data Budgeted unit sales Selling price per unit 1 50,000 $7 Year 2 Quarter 2 3 65,000 105,000 4 75,000 Year 3 Quarter 1 2 90,000 95,000 A B D E F G 1 Chapter 8: Applying Excel 2 3 Data Year 3 Quarter 4 1 3 4 1 2 2 65,000 5 Budgeted unit sales 50,000 105,000 75.000 90,000 95,000 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 Desired ending finished goods inventory 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 19 Accounts payable for raw materials, beginning balance 7 per unit 65,000 75% 25% 80% of the budgeted unit ales of the 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 $ $ 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