Budgotod unit sales 0,000 30,000 100,000 0,000 0,000 Sdlling price por un 8 por unit Accounts rocavable, boginning balanco 05,000 Sales collectod in the quartar sales are made 75% 29% 30% of the budgotod unit sales of the nxd quarto Sales collectod in the quartor afor salos are made Dosired anding inishod goods inventory is Finishod goods invanory, boining 2,000 units aw matorials roquirod to produce ane uni 5 pounds 10% of the nxt quartor's producion noods Desired anding inventory of raw materials Raw maorials inventory,boginning 23,000 pounds aw matarial costs 90.00 par pound 90% in te ganar te prchases are made 40% in tequanar following aw materials purchases are paid Accourts payable for raw morias, boginning bdlanoo 81,500 Entor a formula into oach of the colls marked with a ? bolow Review Problem: Budget Schedules Construct the sales budger Yoar 2 Ouarfer Yoar 3 Cuarfer Budgoted unit sdles Salling price per Tota salos Construct the schedule of expected cash collections Yoar 2Quarfer Yoar Accounts rocavable, boginning balanco First quartor sales Socand quartor sdles Third-quartor sales Fourth quartor sales Totl cash collocions Construct the production budger Yoar 2Quarfer Yoar 3 Cuarfer Yoar Budgoted unit sdles Add dosirod inishod gpods Tatal noods Less boginning Roquired production Construct the raw materials purchases budget Yoar 2 Ouarfer Yoar 3 Quartor Roquired production (units) aw matorials roquirod o produce ane Production neods (pounds Add dosirod anding invantory af raw matorias (pounds) Tatal noods (pounds Less boginning inventory of raw marias (pounda) aw matarials to be purchased Cost af raw materials por pound Cast af raw matorials to be purchasod Construct the schedule of expected cash payments Yoar 2Quarfer Accounts payable, boginning balance First quartor purchases Socand quartor purchases Third-quarter purchases Fourth quarter purchases Tatal cash disbursoments 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: Year 2 Quarter Year 3 Quarter Data Budgeted unit sales Selling price per unit 50,000 65,000 110,000 75, 000 80,000 100,000 1 Chapter 8: Applying Excel 3 Data Year 3 Quarter 4 5 Budgeted unit sales 6 7Selling price per unit 8 Accounts receivable, beginning balance 9 Sales collected in the quarter sales are made 10Sales collected in the quarter after sales are made 11.Desired ending finished goods inventory is 12Finished goods inventory, beginning 13. Raw materials required to produce one unit 14.Desired ending inventory of raw materials is 15. Raw materials inventory, beginning 16Raw material costs 17. Raw materials purchases are paid 18 and 19Accounts payable for raw materials, beginning balance 50,000 65,000 110,000 75,000 80,000 100,000 per unit $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 a. What are the total expected cash collections for the year under this revised budget? Expected cash collections for the year2,033,750 b. What is the total required production for the year under this revised budget? Total required production for the year 86,000 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 1,010,000 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 1,206,060
