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

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Required information The Chapter 8 Form worksheet is to be used to create your own worksheet version of the Review Problem in the text. 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: Year 3 Quarter Data Budgeted unit sales Selling price per unit Year 2 Quarter 23 65,000 110,000 45,000 S7 70,000 $5,000 95,000 1 Chapter 8: Applying Excel Data Year 3 Our 5 Budgeted unit sales 45.000 65.000 110,000 70,000 35.000 05.000 Required information Chapter 8: Applying Excel Data Year 3 Quarter Budgeted unit sales 45.000 05.000 110 000 70.000 85,000 7 - Selling price per unit 7 per unit - Accounts receivable, beginning balance 65.000 9 10 Sales collected in the quarter sales are made . Sales collected in the quarter after sales are made 11 12 13 30% of the budgeted unit sales of the next quarter 12,000 units Pound 14 - Desired ending finished goods inventory is - Finished goods inventory, beginning - Raw materials required to produce one unit - Desired ending inventory of raw materials is - Raw materials inventory beginning Raw material costs Raw materias purchases are paid 107 of the next quarter's production needs 23.000 pounds 15 16 0.80 per pound 60% in the quarter the purchases are made 17 13 14 15 15 17 - Raw materials required to produce one unit Desired ending inventory of raw materiais . Raw materials inventory beginning - Raw material costs - Raw materials purchases are paid 5 pounds 109 of the next quarter's production needs 23.000 pounds 0.90 per pound 50% in the quarter the purchases are made 4096 in the quarter following purchase $ 18 19 and Accounts payable for raw materials, beginning balance 5 81 500 a. What are the total expected cash collections for the year under this revised budget? Expected cash collections for the year Required information b. What is the total required production for the year under this revised budget? 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? d. What are the total expected cash disbursements for raw materials for the year under this revised budget? Total expected cash disbursements for raw 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? No Yes

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