Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information The Chapter 8 Form worksheet is to be used to create your own worksheet version of the Review Problem in the text. Part

image text in transcribed
Required information
The Chapter 8 Form worksheet is to be used to create your own worksheet version of the Review Problem in the text.
Part 2 of 2
Requirement 2:
The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget:
\table[[,A,,B,C,D,E,F,G],[1,Chapter 8: Applying Excel,,,,,,,],[2,,,,,,,,],[3,Data,,,,,,Year 3 Quarter],[4,,,1,2,3,4,1,2],[5,Budgeted unit sales,,45,000,65,000,110,000,70,000,80,000,90,000],[6,,,,,,,,],[7,- Selling price per unit,$,7,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,,,,,]]
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 cautiones that due to the current production constraint, a complex machine, the plant can produce no more than 80,000 units in any one quarter. Is this a potential problem (no/yes)?
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles Part 2

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow

6th Canadian edition Volume 1

1118306791, 978-1118306796

More Books

Students also viewed these Accounting questions

Question

What is the System.Exception class?

Answered: 1 week ago

Question

In OOP, what is meant by the term abstraction?

Answered: 1 week ago