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Required information Chapter 8: Applying Excel: Excel Worksheet (Part 1 of 2) (Algo) Step : Download the Applying Excel form located on the len-hand side under files. If you have trouble, the file is also located in D2L under Course Files and Resources Step 2: Then enter formulas in all cells that contain question marks. For example, in cell B26 enter the formula 85. Aber entering formules in all the cells that contained question marks, verify that the dollar amounts match the numbers in Review Problem 1 Step 3: Check your worksheet by changing the budgeted unit sales in Quarter 2 of Year 2 in cell C5 to 75,000 units. The required production for the year should be 274,000 units. The cost of raw materials to be purchased for the year should be $1106,800, whereas the total cash disbursements for the year should be $1095,980. If you do not get this answer find the errors in your worksheet and correct them. Step 4: Proceed to the requirements below only aher completing your worksheet as it will be used to answer the following questions 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 45.000 37 Year 2 Quarter 2 3 10,000 105,000 4 75,000 Year 3 Quarter 2 90,000 100.000 3 D E F G 1 3 2 70,000 4 75.000 Year 3 Quarter 1 90,000 2 100,000 45.000 105.000 A 1 Chapter : Applying Excel 8 2 3 Data 4 5 Budgeted unit sales 6 > - Seling price per unit 8 Accounts receivable beginning balance 9 Sales collected in the areas are made Sales collected in the quarters we made 10 11 Desired dig frihed goods inventory Finished goods inventory beginning 12 Raw maguired to produce one unt 13 Desired ending inventory of raw materia 5 $ z perunt 85.000 75% 25% 30% of the budgeted units of the next quarter 12.000 units 5 pounds 10% of the next Quarter's production needs Required information 9 10 11 12 13 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 Raw materials inventory beginning Raw material costs Raw materials purchases are paid and Accounts payable for raw materials, beginning balance 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 14 15 $ 16 17 18 19 $ 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 ww materials to be purchased 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? Toul expected cash disbursements for raw materials for the year 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? O NO Yes c B D E G H Chapter 8: Applying Excel Data Yoar 2 Quarter 2 3 60,000 100,000 4 50,000 Year 3 Quarter 1 2 70,000 80.000 Budgeted unit sales 40,000 $8 $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 Seling price per un 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 2. Finished goods inventory beginning 3. Raw materials required to produce one unt 4. Desid ending inventory of raw materials is 15. Raw materials inventory beginning 15. Raw material costs 17. 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 20 Budgeted unit sales 27 Seling price per un 28 Total sales 29 20 Construct the schedule of expected cash collections 31 32 Beginning balance accounts receivable starter sales 34 Second quarter sales 35 Third quarters 36 Fourth quarters 37 Totalt colections 1 4 7 ? ? Year 2 Quarter 2 J 7 ? 7 7 2 7 7 ? 2 Yoar 3 Quarter 2 ? 7 ? ? 2 ? F Year 2 Quar 2 3 Year 2 2 2 ? ? 2 7 ? 2 ? ? 2 ? 7 7 + ? 7 7 4 Year Construct the production budget 41 Budgeted units 42 Add desired ending the goods inventory 4 Total needs Chapter 8 Form Year 2 water 2 2 7 2 2 Year 3 Quarter 1 2 2 7 2 7 ? ? ? ? 2 7 X fx Data 8 C D E G H 1 ? 2 ? 2 2 7 ? 1 4 Year ? ? ? 7 ? ? Year 2 Quarter 2. 3 7 2 7 7 ? ? 7 ? 7 7 ? 2 ? 7 2 2 7 ? 2 ? Year 3 Quarter 1 2 ? 7 2 2 2 1 Year Yoar 3 Quarter 1 7 ? 2 - 36. Fourth quarter sales 37 Total cash collections 38 39 Construct the production budget 40 41 Budgeted unit sales 42 Add desired ending finished goods inventory 43 Total needs 44 Less beginning finished goods inventory 45 Required production in units 46 47 Construct the raw materials purchases budget 48 49 Required production (units) 50 Raw materials required to produce one unit (pounds) 51 Production needs (pounds) 52 Add desired ending Inventory of raw materials (pounds) 53 Total needs (pounds) 54 Loss beginning inventory of raw materials (pounds) 55 Raw materials to be purchased pounds) 58 Cout of raw materials per pound 57 Cost of raw materials to be purchased 58 50 Construct the schedule of expected cash payments 00 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 68 09 70 F ? 2 2 2 2 7 ? 7 ? Year 2 Quarter 2 3 ? ? 2 2 . 2 7 2 ? ? ? 2 ? 7 2 2 7 2 ? 2 2 2 2 ? 7 7 ? ? ? ? ? 2 7 ? 2 Year 2 Quarter 2 3 4 You ? 2 ? 7 2 ? 2 ? 2 7 2 ? 2 ? ? ? ? 7 + 72 74 75 77