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A. What are the total expected cash collections for the year under 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?

A. What are the total expected cash collections for the year under 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?

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter7: Budgeting
Section: Chapter Questions
Problem 13PA: Caribbean Hammocks currently sells 75.000 units at $50 per unit. Its expenses are: Management...
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A. What are the total expected cash collections for the year under 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? 

 

rement 2: ompany has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling from $8 to $7. The marketing manager would like to use the following projections in the budget: 2 of 2 Year 2 Quarter Year 3 Quarter 1 2 4 2 geted unit sales ling price per unit 45,000 $7 70,000 120,000 75,000 85,000 95,000 eBook A B C E Print Chapter 8: Applying Excel eferences Data Year 3 Quarter 1 4 1 Budgeted unit sales 45,000 70,000 120,000 75,000 85,000 95,000 Ac Graw Hill < Prev of 3 Next > ...... ....*RE 11:17 PM DELL ear 3/10/2022
Transcribed Image Text:rement 2: ompany has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling from $8 to $7. The marketing manager would like to use the following projections in the budget: 2 of 2 Year 2 Quarter Year 3 Quarter 1 2 4 2 geted unit sales ling price per unit 45,000 $7 70,000 120,000 75,000 85,000 95,000 eBook A B C E Print Chapter 8: Applying Excel eferences Data Year 3 Quarter 1 4 1 Budgeted unit sales 45,000 70,000 120,000 75,000 85,000 95,000 Ac Graw Hill < Prev of 3 Next > ...... ....*RE 11:17 PM DELL ear 3/10/2022
Selling price per unit 7 per unit Accounts receivable, beginning balance 65,000 • Sales collected in the quarter sales are made 75% Sales collected in the quarter after sales are made 25% • Desired ending finished goods inventory is 30% of the budgeted unit sales of the next quarter Finished goods inventory, beginning 12,000 units Raw materials required to produce one unit 5 pounds ok Desired ending inventory of raw materials is 10% of the next quarter's production needs nt • Raw materials inventory, beginning 23,000 pounds • Raw material costs 0.80 per pound nces • Raw materials purchases are paid 60% in the quarter the purchases are made and 40% in the quarter following purchase Accounts payable for raw materials, beginning balance 81,500 < Prev of 3 Next > .. %24 %24 %24 %24
Transcribed Image Text:Selling price per unit 7 per unit Accounts receivable, beginning balance 65,000 • Sales collected in the quarter sales are made 75% Sales collected in the quarter after sales are made 25% • Desired ending finished goods inventory is 30% of the budgeted unit sales of the next quarter Finished goods inventory, beginning 12,000 units Raw materials required to produce one unit 5 pounds ok Desired ending inventory of raw materials is 10% of the next quarter's production needs nt • Raw materials inventory, beginning 23,000 pounds • Raw material costs 0.80 per pound nces • Raw materials purchases are paid 60% in the quarter the purchases are made and 40% in the quarter following purchase Accounts payable for raw materials, beginning balance 81,500 < Prev of 3 Next > .. %24 %24 %24 %24
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ISBN:
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