Required:

1. Check your worksheet by changing the budgeted unit sales in Quarter 2 of Year 2 in cell C5 to 75,000 units. The total expected cash collections for the year should now be $2,085,000. The required production for the year should be 274,000 units. The cost of raw materials to be purchased for the year should be $1,106,800, whereas the total cash disbursements for the year should be $1,095,980. If you do not get this answer, find the errors in your worksheet and correct them.

Data Budgeted unit sales - Selling price per unit \begin{tabular}{cccccc} & Year 2 Quarter & \multicolumn{3}{c}{ Year 3 Quarter } \\ 1 & 2 & 3 & 4 & 1 & 2 \\ \hline 40,000 & 60,000 & 100,000 & 50,000 & 70,000 & 80,000 \end{tabular} - Accounts recervable, beginning balance $8 per unit - Sales collected in the quarter sales are made - Desired ending finished goods imventor - Raw materials required to produce one unit. $65,000 75% 25%6 30% of the budgeted unit sales of the next quarter 12,000 units - Desired ending inventory of raw materials is 5 pounds - Raw materials imventory, beginning - Raw material costs 10% of the next quarter's production needs 23,000 pounds - Raw materials purchases are paid $0.80 per pound and 60% in the quarter the purchases are made 40% in the quarter following purchase 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 Construct the schedule of expected cash collection Accounts receivable, beginning balai First-quarter sales 4 Second-quarter sales 5 Third-quarter sales 7 Tourth-quarter sales 1otal cash collections Construct the production budget \begin{tabular}{ccccc} & \multicolumn{5}{c}{} & & \\ \hline & Year 2 Quarter & \\ \hline? & 2 & 3 & 4 & Year \\ & ? & ? & & ? \\ & ? & ? & ? \\ & & ? & ? & ? \\ \hline & ? & ? & ? & ? \\ \hline \end{tabular} Budgeted unit sales Add desired finished goods inventory Total needs Less beginning inventory Required production Construct the raw materials purchases budget