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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
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
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
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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