Chapter 8: Applying Excel Data Year 2 Quarter 2 3 60,000 100,000 Year 3 Quarter 1 2 70,000 80,000 Budgeted unit sales 4 50,000 40,000 Selling price per unit Accounts receivable, beginning balance Sales collected in the quarter sales are made Sales collected in the quarter after sales are made Desred ending finished goods inventory is be Finished goods Inventory, beginning Raw materials required to produce one unit Desired ending Inventory of raw materials is Raw materials Inventary, beginning Raw material costs Rew materials purchases are paid and Accounts payable for raw materials, beginning balance $8 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 Enter a formule into each of the cats marked with a ? below Review Problem: Budget Schedules Construct the sales budget 1 F 4 Budgeted unit sales Selling price per unit Total sales Year 2 Quarter 2 3 ? ? ? Year 3 Quarter 1 2 ? 7 ? ? ? ? ? ? ? 7 7 7 2 ? ? 2 7 Construct the schedule of expected cash collections Year 2 Quarter 2 2 3 1 F 4 Year e Accounts receivable, beginning balance First-quarter sales Second-quarter sales Third-quarter sales Fourth quarter sales Total cash collections ? ? ? ? 7 7 7 7 7 2 2 ? ? 21 ? ? Construct the production budget 1 4 Yoar Buigeted unit sales Add desired finished goods Inventory Total needs Less beginning Inventory Required production Year 2 Quarter 2 3 ? 2 ? ? ? ? ? ? ? 2 ? ? 2 2 ? ? ? ? ? 2 7 ? Yoar 3 Quarter 1 2 ? ? 7 ? ? ? 2 ? ? ? ? Construct the raw materials purchases budget Yoer 3 Quarter 1 4 Year Required production (units) Raw materials required to produce one unit Production needs (pounds) Add desired ending inventory of raw materials (pounds) Total needs (pounds) Less beginning Inventory of raw materials (pounds) Raw materials to be purchased Cost of raw materials per pound Cost of raw materials to be purchased ? ? ? ? 2 ? ? Your 2 Quarter 2 3 ? 7 ? 2 1 ? ? 7 ? ? ? 2 ? 7 ? ? ? 7 21 ? 7 ? 2 2 7 7 ? ? ? ? ? 2 2 2 7 2 ? ? 2 2 7 ? 2 2 Construct the schedule of expected cash payments 1 Year 2 Quarter 2 3 4 Yeer ? ? Accounts payable, beginning balance First quarter purchases Second quarter purchases Third quarter purchases Fourth-quarter purchases Total cash disbursements ? ? ? 2 2 2 ? 2 2 2 ? 7 ? ? ? 7 2 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 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 O Yes