Construct the raw materials purchases budget????
Data	Year 2 Quarter				Year 3 Quarter
	1	2	3	4	1	2
Budgeted unit sales	40,000	60,000	100,000	50,000	70,000	80,000
Selling price per unit	$8	per unit
Accounts receivable, beginning balance	$65,000
Sales collected in the quarter sales are made	75%
Sales collected in the quarter after sales are made	25%
Desired ending finished goods inventory is	30%	of the budgeted unit sales of the next quarter
Finished goods inventory, beginning	12,000	units
Raw materials required to produce one unit	5	pounds
Desired ending inventory of raw materials is	10%	of the next quarter's production needs
Raw materials inventory, beginning	23,000	pounds
Raw material costs	$0.80	per pound
Raw materials purchases are paid	60%	in the quarter the purchases are made
and	40%	in the quarter following purchase
Accounts payable for raw materials, beginning balance	$81,500
Enter a formula into each of the cells marked with a ? below
Review Problem: Budget Schedules
Construct the sales budget	Year 2 Quarter				Year 3 Quarter
	1	2	3	4	1	2
Budgeted unit sales	40,000	60,000	100,000	50,000	70,000	80,000
Selling price per unit	8	8	8	8	8	8
Total sales	$320,000	$480,000	$800,000	$400,000	$560,000	$640,000
Construct the schedule of expected cash collections	Year 2 Quarter
	1	2	3	4	Year
Accounts receivable, beginning balance	$ 65,000				$ 65,000
First-quarter sales	240,000	$ 80,000			$ 320,000
Second-quarter sales		360,000	$ 120,000		$ 480,000
Third-quarter sales			600,000	$ 200,000	$ 800,000
Fourth-quarter sales				300,000	$ 300,000
Total cash collections	$ 305,000	$ 440,000	$ 720,000	$ 500,000	$ 1,965,000
Construct the production budget	Year 2 Quarter					Year 3 Quarter
	1	2	3	4	Year	1	2
Budgeted unit sales	40,000	60,000	100,000	50,000	250,000	70,000	80,000
Add desired finished goods inventory	18,000	30,000	15,000	21,000	84,000	24,000
Total needs	58,000	90,000	115,000	71,000	334,000	94,000
Less beginning inventory	12,000	18,000	30,000	15,000	75,000	21,000
Required production	46,000	72,000	85,000	56,000	259,000	73,000
Construct the raw materials purchases budget	Year 2 Quarter					Year 3 Quarter
	1	2	3	4	Year	1
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	?	?	?	?	?
Construct the schedule of expected cash payments	Year 2 Quarter
	1	2	3	4	Year
Accounts payable, beginning balance	$ 81,500				$ 81,500
First-quarter purchases	116,640	$ 77,760			$ 194,400
Second-quarter purchases		175,920	$ 117,280		$ 293,200
Third-quarter purchases			197,040	$ 131,360	$ 328,400
Fourth-quarter purchases				138,480	$ 138,480
Total cash disbursements	$ 198,140	$ 253,680	$ 314,320	$ 269,840	$ 1,035,980