Data 1 40,000 Year 2 Quarter 2 3 60,000 100,000 4 50,000 Year 3 Quarter 1 2 70,000 80,000 Budgeted unit sales 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 - Desired ending finished goods inventory is - Finished goods inventory, beginning - Raw materials required to produce one unit Desired ending inventory of raw materials is - Raw materials inventory, beginning - Raw material costs - Raw materials purchases are paid and $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 Raw materials inventory, beginning Raw material costs - Raw materials purchases are paid and Accounts payable for raw materials, beginning balance 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 formula into each of the cells marked with a ? below Review Problem: Budget Schedules Construct the sales budget Budgeted unit sales Selling price per unit Total sales 1 40,000 $8 $320,000 Year 2 Quarter 2 3 60,000 100,000 $8 $8 $480,000 $800,000 4 50,000 $8 $400,000 Year 3 Quarter 1 2 70,000 80,000 $8 $8 $560,000 $640,000 Construct the sales budget Budgeted unit sales Selling price per unit Total sales 1 40,000 $8 $320,000 Year 2 Quarter 2 3 60,000 100,000 $8 $8 $480,000 $800,000 4 50,000 $8 $400,000 Year 3 Quarter 1 2 70,000 80,000 $8 $8 $560,000 $640,000 Construct the schedule of expected cash collections Year 2 Quarter 2 3 4 $ 1 65,000 240,000 $ $ 80,000 ? Accounts receivable, beginning balance First-quarter sales Second-quarter sales Third-quarter sales Fourth quarter sales Total cash collections ? ? Year 65,000 320,000 ? ? ? ? ? ? ? ? ? ? Construct the production budget 1 4 Year Year 3 Quarter 1 2 ? Budgeted unit sales Add desired finished goods inventory Total needs Less beginning inventory Required production ? Year 2 Quarter 2 3