Budgeting: Applying Excel
Data	Year 2				Year 3
	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Quarter 1	Quarter 2
Budgeted unit sales	30,000	70,000	40,000	90,000	50,000	70,000
Selling price per unit	$25
Accounts receivable, beginning balance	$40,000
Sales collected in the quarter sales are made	85%
Sales collected in the quarter after sales are made	10%
Desired ending finished goods inventory is	15%	of the budgeted unit sales of the next quarter
Finished goods inventory, beginning	15,000	units
Raw materials required to produce one unit	2	pounds
Desired ending inventory of raw materials is	20%	of the next quarter's production needs
Raw materials inventory, beginning	10,000	pounds
Raw material costs	$2.00	per pound
Raw materials purchases are paid	75%	in the quarter the purchases are made
and	25%	in the quarter following purchase
Accounts payable for raw materials, beginning balance	$60,000