1 Chapter 8: Applying Excel 2 3 Data 4 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. 20 21 Enter a formula into each of the cells marked with a ? below 22 Review Problem: Budget Schedules 23 24 Construct the sales budget 25 26 Budgeted unit sales 27 Selling price per unit 28 Total sales 29 30 Construct the schedule of expected cash collections 31 32 Accounts receivable, beginning balance 33 First-quarter sales 34 Second-quarter sales 35 Third-quarter sales 36 Fourth-quarter sales 37 Total cash collections 38 39 Construct the production budget 40 41 Budgeted unit sales 42 Add desired finished goods inventory 43 Total needs 44 Less beginning inventory 45 Required production 46 47 Construct the raw materials purchases budget 48 49 Required production (units) 50 Raw materials required to produce one unit 51 Production needs (pounds) 52 Add desired ending inventory of raw materials (pounds) 53 Total needs (pounds) 54 Less beginning inventory of raw materials (pounds) 55 Raw materials to be purchased 56 Cost of raw materials per pound 57 Cost of raw materials to be purchased 58 59 Construct the schedule of expected cash payments 60 61 Accounts payable, beginning balance 62 First-quarter purchases 63 Second-quarter purchases 64 Third-quarter purchases 65 Fourth-quarter purchases 66 Total cash disbursements 67 1 40,000 1 $65,000 75% 25% 30% of the budgeted unit sales of the next quarter 12,000 units 1 5 pounds 10% of the next quarter's production needs 23,000 pounds 1 $8 per unit $0.80 per pound 60% in the quarter the purchases are made 40% in the quarter following purchase $81,500 1 1 ? ? ? ? ? 2 ? ? ? ? 2 ? ? ? ? ? ? ? ▼ ? ? ? Year 2 Quarter 2 60,000 ▼ ? ? ▼ ▼ Year 2 Quarter 2 ? ? ? Year 2 Quarter 2 ? ? ? 3 100,000 ? ? ? ? ? Year 2 Quarter 2 Year 2 Quarter 2 ? 2 ? ? ? ? ? ? ? ? ? Year 2 Quarter 2 ? 3 3 3 3 3 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 4 50,000 ▼ ? ? ? ▼ 4 4 4 4 4 ? ? 2 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ✓ ? ? ? ? ? Year 3 Quarter 1 70.000 Year 3 Quarter 1 2 Year Year Year Year ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 2 2 ? ? P ? 2 2 80,000 ? ? ? Year 3 Quarter 1 2 ? ? ? 2 ? Year 3 Quarter 1 ? ? ? ?
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
![Download the Applying Excel form and enter formulas in all cells that contain question marks.
For example, in cell B26 enter the formula "= B5".
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F84be77e3-7e2a-48d9-923c-45508700aa71%2Fec890961-3cc6-489b-9859-b2f58b1122c8%2Fl9dh9at_processed.png&w=3840&q=75)
![1 Chapter 8: Applying Excel
2
3 Data
4
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
.
A
18
19
20
21 Enter a formula into each of the cells marked with a ? below
and
Accounts payable for raw materials, beginning balance
22 Review Problem: Budget Schedules
23
24 Construct the sales budget
25
26 Budgeted unit sales
27 Selling price per unit
28 Total sales
29
30 Construct the schedule of expected cash collections
31
32 Accounts receivable, beginning balance
33 First-quarter sales.
34 Second-quarter sales
35 Third-quarter sales
36 Fourth-quarter sales
37 Total cash collections.
38
39 Construct the production budget
40
41 Budgeted unit sales
42 Add desired finished goods inventory
43 Total needs
44 Less beginning inventory
45 Required production
46
47 Construct the raw materials purchases budget
48
49 Required production (units)
50 Raw materials required to produce one unit
51 Production needs (pounds)
52 Add desired ending inventory of raw materials (pounds)
53 Total needs (pounds)
54 Less beginning inventory of raw materials (pounds)
55 Raw materials to be purchased
56 Cost of raw materials per pound
57 Cost of raw materials to be purchased
58
59 Construct the schedule of expected cash payments
60
61 Accounts payable, beginning balance
62 First-quarter purchases
63 Second-quarter purchases
64 Third-quarter purchases
65 Fourth-quarter purchases
66 Total cash disbursements
67
B
1
40,000
1
1
1
1
$8 per unit
$65,000
75%
25%
30% of the budgeted unit sales of the next quarter
12,000 units
1
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
?
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?
?
?
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с
▼
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Year 2 Quarter
2
60,000
▼
Year 2 Quarter
2
?
?
?
?
?
Year 2 Quarter
▼
2
?
?
?
?
?
Year 2 Quarter
▼
2
2
?
3
100,000
Year 2 Quarter
2
?
?
?
?
?
?
?
?
D
3
?
?
Year 2 Quarter
2
?
3
3
3
3
?
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?
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?
?
?
?
?
?
?
?
?
▼
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?
?
T
?
?
T
E
▼
4
50,000
▼
4
4
4
4
4
?
?
?
?
?
?
?
2
?
?
?
?
?
?
?
?
?
?
▼
?
?
?
2
?
F
Year 3 Quarter
1
2
70,000
80,000
Year 3 Quarter
1
2
Year
Year
Year
Year
?
?
?
?
2
2
?
?
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2
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2
2
2
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2
?
G
▼
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?
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Year 3 Quarter
1
2
?
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2
?
?
Year 3 Quarter
1
H
?
?
?
2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F84be77e3-7e2a-48d9-923c-45508700aa71%2Fec890961-3cc6-489b-9859-b2f58b1122c8%2Frye90nl_processed.png&w=3840&q=75)
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![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
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](https://content.bartleby.com/qna-images/question/84be77e3-7e2a-48d9-923c-45508700aa71/3411dddf-bcd5-4b76-80ed-06b70f2f0e15/4u9145h_thumbnail.png)
![The company just hired a new marketing manager who insists 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
2
3
Chapter 8: Applying Excel
Data
A
Budgeted unit sales
1
45,000
$7
Year 2 Quarter
2
3
70,000 110,000
4
5
6
7
8
9
10
11
12
13
14
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
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
• Desired ending finished goods inventory is
Finished goods inventory, beginning
Raw materials required to produce one unit
• Desired ending inventory of raw materials is
$
$
$
$
B
1
4
75,000
45,000
с
2
7 per unit
Year 3 Quarter
1
80,000
70,000
2
100,000
0.80 per pound
3
110,000
5 pounds
10% of the next quarter's production needs
23,000 pounds
E
65,000
75%
25%
30% of the budgeted unit sales of the next quarter
12,000 units
60% in the quarter the purchases are made
40% in the quarter following purchase
81,500
4
75,000
F
Year 3 Quarter
1
80,000
G
2
100,000](https://content.bartleby.com/qna-images/question/84be77e3-7e2a-48d9-923c-45508700aa71/3411dddf-bcd5-4b76-80ed-06b70f2f0e15/8tvymy_thumbnail.png)
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