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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
| 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 | ||||||
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