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Data Year 2 Quarter Year 3 Quarter 1 ' 2 ' 3 ' e1 ' 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 alter sales are made 25% - Desired ending nished goods inventory is 30% ofthe budgeted unit sales ofthe 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% ofthe next quartefs production needs - Raw materials inventory, beginning 23,000 pounds - Raw material costs $0.80 per pound - Raw materials purchases are paid 60% in the quarterthe purchases are made and 40% in the quarter following purchase - Accounts payable for raw materials, beginning balance $81,500 Enter a formula into each ot the cells marked with a ? below Review Problem: Budget Schedules Construct the sales budget Year 2 Quarter Year 3 Quarter 1 ' 2 ' 3 ' e1 ' 1 ' 2 Budgeted unit sales 40,000 75,000 100,000 50,000 265,000 70,000. Selling price per unit $8 $8 $8 $8 $8 '7 Total sales $320,000 $600,000 $800,000 $400,000 $2,120,000 Construct the schedule of expected cash collections Year 2 Quarter 1 ' 2 ' 3 ' :1 Year Accounts receivable, beginning balance $ 65,000 $ 65,000 First-quarter sales 240,000 $ 80,000 240,000 Secondquarter sales $ 450,000 $ 150,000 80,000 Thirdquarter sales 600,000 $200,000 200,000 Fourth-quarter sales 300,000 300,000 Total cash collections $ 305,000 $ 530,000 $ 750,000 $500,000 $ 2,085,000 Construct the production budget Year 2 Quarter 1 ' 2 ' 3 ' :1 Year 1 Budgeted unit sales 40,000 75,000 100,000 50,000 265,000 70,000 Add desired nished goods inventory 22,500 30,000 15,000 21,000 21,000 24,000 Total needs 62,500 105,000 115,000 71,000 286,000 84,000 Less beginning inventory 12,000 22,500 30,000 15,000 12,000 21,000 Required production 50,500 82,500 85,000 56,000 274,000 73,000 Year 3 Quarter 7 2