Chapter 8 Applying Excel Data Year 2 Quarter Year 3 Quarter 1 2 3 4 1 2 Budgeted Unit Sales 40,000 60,000 100,000 50,000 70,000 80,000 Selling price per unit $8 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 Desired ending inventory of raw materials is 10% of the next quarter's production needs Raw materials inventory, beginning 23,000 pounds Raw materials cost $0.80 per pound 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
Chapter 8 Applying Excel Data Year 2 Quarter Year 3 Quarter 1 2 3 4 1 2 Budgeted Unit Sales 40,000 60,000 100,000 50,000 70,000 80,000 Selling price per unit $8 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 Desired ending inventory of raw materials is 10% of the next quarter's production needs Raw materials inventory, beginning 23,000 pounds Raw materials cost $0.80 per pound 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
Question
| Chapter 8 Applying Excel | ||||||
| Data | Year 2 Quarter | Year 3 Quarter | ||||
| 1 | 2 | 3 | 4 | 1 | 2 | |
| Budgeted Unit Sales | 40,000 | 60,000 | 100,000 | 50,000 | 70,000 | 80,000 |
| Selling price per unit | $8 | |||||
| $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 | ||||
| Desired ending inventory of raw materials is | 10% | of the next quarter's production needs | ||||
| Raw materials inventory, beginning | 23,000 | pounds | ||||
| Raw materials cost | $0.80 | per pound | ||||
| 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 |
|
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