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Required information Chapter 8: (Algo) Applying Excel (LO8-2, LON-3, LO8-4) The Chapter 8 Form worksheet is to be used to create your own worksheet version

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Required information Chapter 8: (Algo) Applying Excel (LO8-2, LON-3, LO8-4) The Chapter 8 Form worksheet is to be used to create your own worksheet version of the Review Problem in the text Chapter 8: (Algo) Applying Excel: Exercise (Part 2 of 2) Requirement 2: The company has just hired a new marketing manager who insists that unt sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget Year 3 Quarter Data Budgeted unit sales Selling price per unit Wear 2 Quarter 2 65.000 110,000 58,000 $7 4 70,000 80,000 95,000 2. 3 Data 4 1 3 2 65,000 Year 3 Quarter 4 1 70.000 80,000 2 95,000 50.000 110,000 5 $ 5 Budgeted unit sales 6 7 . Selling price per unit 8 Accounts receivable, beginning balance 9 Sales collected in the quarter sales are made 10 Sales collected in the quarter after sales are made 11 Desired ending finished goods inventory is 12 Finished goods inventory, beginning 13 Raw materials required to produce one unit 14 Desired ending inventory of raw materials is 15 Raw materials inventory beginning 16 Raw material costs 17 Raw materials purchases are paid 18 and 19 Accounts payable for raw materials, beginning balance 7 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 080 per pound 60% In the quarter the purchases are made 4096 In the quarter following purchase 81.500 $ $ a. What are the total expected cash collections for the year under this revised budget? Expected cash collections for the year b. What is the total required production for the year under this revised budget? 2 Total required production for the year c. What is the total cost of raw materials to be purchased for the year under this revised budget? Total cost of raw materials to be purchased for the year d. What are the total expected cash disbursements for raw materials for the year under this revised budget? Total expected cash disbursements for tast materials for the year 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 80,000 units in any one quarter is this a potential problem? Yes O No

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