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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 Chapter 8: Applying Excel 2 3 4 5 Budgeted unit sales 6 Data A 1 45,000 $7 Year 2 Quarter 2 3 70,000 105,000 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 $ $ $ $ B 1 4 65,000 45,000 с 2 7 per unit Year 3 Quarter 1 90,000 70,000 2 90,000 D 3 105,000 5 pounds 10% of the next quarter's production needs 23,000 pounds E 0.80 per pound 60% in the quarter the purchases are made 40% in the quarter following purchase 81,500 4 65,000 75% 25% 30% of the budgeted unit sales of the next quarter 12,000 units 65,000 F Year 3 Quarter 1 90,000 G 2 90,000

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 Chapter 8: Applying Excel 2 3 4 5 Budgeted unit sales 6 Data A 1 45,000 $7 Year 2 Quarter 2 3 70,000 105,000 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 $ $ $ $ B 1 4 65,000 45,000 с 2 7 per unit Year 3 Quarter 1 90,000 70,000 2 90,000 D 3 105,000 5 pounds 10% of the next quarter's production needs 23,000 pounds E 0.80 per pound 60% in the quarter the purchases are made 40% in the quarter following purchase 81,500 4 65,000 75% 25% 30% of the budgeted unit sales of the next quarter 12,000 units 65,000 F Year 3 Quarter 1 90,000 G 2 90,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
Transcribed Image Text: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
Chapter 8: Applying Excel: Exercise (Part 2 of 2) 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 Chapter 8: Applying Excel 2 3 4 5 6 780 9 10 11 12 13 14 56789 15 16 17 18 19 Data Budgeted unit sales A 1 45,000 $7 Year 2 Quarter 2 3 70,000 105,000 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 Raw materials inventory, beginning Raw material costs Raw materials purchases are paid and Accounts payable for raw materials, beginning balance $ $ $ $ B 1 4 65,000 45,000 C 2 7 per unit Year 3 Quarter 1 90,000 70,000 2 90,000 D 3 105,000 5 pounds 10% of the next quarter's production needs 23,000 pounds E 0.80 per pound 60% in the quarter the purchases are made 40% in the quarter following purchase 81,500 4 65,000 75% 25% 30% of the budgeted unit sales of the next quarter 12,000 units 65,000 F Year 3 Quarter 1 90,000 G 2 90,000
Transcribed Image Text:Chapter 8: Applying Excel: Exercise (Part 2 of 2) 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 Chapter 8: Applying Excel 2 3 4 5 6 780 9 10 11 12 13 14 56789 15 16 17 18 19 Data Budgeted unit sales A 1 45,000 $7 Year 2 Quarter 2 3 70,000 105,000 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 Raw materials inventory, beginning Raw material costs Raw materials purchases are paid and Accounts payable for raw materials, beginning balance $ $ $ $ B 1 4 65,000 45,000 C 2 7 per unit Year 3 Quarter 1 90,000 70,000 2 90,000 D 3 105,000 5 pounds 10% of the next quarter's production needs 23,000 pounds E 0.80 per pound 60% in the quarter the purchases are made 40% in the quarter following purchase 81,500 4 65,000 75% 25% 30% of the budgeted unit sales of the next quarter 12,000 units 65,000 F Year 3 Quarter 1 90,000 G 2 90,000
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