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: Data Budgeted unit sales Selling price per unit 1 45,000 $7 Year 2 Quarter 2 3 70,000 110,000 Year 3 Quarter 1 2 80,000 100,000 70,000 A B D E 1 Chapter 8: Applying Excel 2 3 Data Ye 4 1 2 3 4 45,000 70,000 110,000 70.000 5 Budgeted unit sales 6 7 . S 8 S Selling price per unit Accounts receivable, beginning balance Sales collected in the quarter sales are made Sales collected in the quarter after sales are made 7 per unit 65,000 75% 9 10 25% B C D E 1 Chapter 8: Applying Excel 2 3 Data Yo 4 1 2 4 5 Budgeted unit sales 3 110,000 45,000 70,000 70,000 6 S $ 11 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 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 0.80 per pound 60% in the quarter the purchases are made 40% in the quarter following purchase 81,500 S S A B n D m F G xcel Year 3 Quarter 1 2 3 4 2 1 80.000 45,000 70.000 110,000 70.000 100,000 $ $ 7 per unit 65,000 75% moginning balance quarter sales are made quarter after sales are made d goods inventory is ory beginning to produce one unit ary of raw materials is y, beginning 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 0.80 per pound 60% in the quarter the purchases are made 40% in the quarter following purchase 81,500 $ es are paid aw materials, beginning balance $ 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? 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 c. What is the total cost of raw materials to be purchased for the year under this revised budget? Tutal coat of raw materials to be purchased for the yeni 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
