Data Year 2 Quarter Year 3 Quarter 1 2 3 4 1 2 Budgeted unit sales 50,000 65,000 115,000 70,000 80,000 90,000 Selling price per unit $7 per unit 1 Chapter 7 Applying Excel 2 3 Data Year 2 Quarter Year 3 Quarter 4 1 2 3 4 1 2 5 Budgeted unit sales 50,000 65,000 115,000 70,000 80,000 90,000 6 7 Selling price per unit $8 per unit 8 Accounts receivable, beginning balance $65,000 9 Sales collected in the quarter sales are made 75 10 Sales collected in the quarter after sales are made 25 11 Desired ending finished goods inventory is 30 of the budgeted unit sales of the next quarter 12 Finished goods inventory, beginning 12,000 units 13 Raw materials required to produce one unit 5 pounds 14 Desired ending inventory of raw materials is 10 of the next quarter's production needs 15 Raw materials inventory, beginning 23,000 pounds 16 Raw material costs $0 80 per pound 17 Raw materials purchases are paid 60 in the quarter the purchases are made 18 and 40 in the quarter following purchase 19 Accounts payable for raw materials, beginning balance $81,500 20 a What are the total expected cash collections for the year under this revised budget b What is the total required production for the year under this revised budget c What is the total cost of raw materials to be purchased for the year under this revised budget d What are the total expected cash disbursements for raw materials for the year under this revised budget 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 90,000 units in any one quarter Is this a potential problem Yes No

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 17, 2024

Data Year 2 Quarter Year 3 Quarter 1 2 3 4 1 2 Budgeted unit sales 50,000 65,000 115,000 70,000 80,000 90,000 Selling price per

Data	Year 2 Quarter				Year 3 Quarter
	1	2	3	4	1	2
Budgeted unit sales	50,000	65,000	115,000	70,000	80,000	90,000
Selling price per unit	$7	per unit

1	Chapter 7: Applying Excel
2
3	Data	Year 2 Quarter				Year 3 Quarter
4		1	2	3	4	1	2
5	Budgeted unit sales	50,000	65,000	115,000	70,000	80,000	90,000
6
7	Selling price per unit	$8	per unit
8	Accounts receivable, beginning balance	$65,000
9	Sales collected in the quarter sales are made	75%
10	Sales collected in the quarter after sales are made	25%
11	Desired ending finished goods inventory is	30%	of the budgeted unit sales of the next quarter
12	Finished goods inventory, beginning	12,000	units
13	Raw materials required to produce one unit	5	pounds
14	Desired ending inventory of raw materials is	10%	of the next quarter's production needs
15	Raw materials inventory, beginning	23,000	pounds
16	Raw material costs	$0.80	per pound
17	Raw materials purchases are paid	60%	in the quarter the purchases are made
18	and	40%	in the quarter following purchase
19	Accounts payable for raw materials, beginning balance	$81,500
20

What are the total expected cash collections for the year under this revised budget?

What is the total required production for the year under this revised budget?

c.	What is the total cost of raw materials to be purchased for the year under this revised budget?

What are the total expected cash disbursements for raw materials for the year under this revised budget?

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 90,000 units in any one quarter. Is this a potential problem?

Yes/No