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: Year 2 Quarter Year 3 Quarter Data 1 2 Budgeted unit sales 45,000 65,000 3 120,000 4 1 2 60,000 80,000 100,000 Selling price per unit $7 1 Chapter 8: Applying Excel 2 3 Data 4 A B C D E F G 1 2 3 4 Year 3 Quarter 1 2 45,000 65,000 120,000 60,000 80,000 100,000 5 Budgeted unit sales 6 7 Selling price per unit 8 Accounts receivable, beginning balance 9 • Sales collected in the quarter sales are made EA $ 7 per unit 65,000 75% 10 11 12 • Finished goods inventory, beginning 13 14 34 • Raw materials required to produce one unit • Desired ending inventory of raw materials is 15 16 56 Raw materials inventory, beginning • Sales collected in the quarter after sales are made Desired ending finished goods inventory is 25% 30% of the budgeted unit sales of the next quarter 12,000 units 5 pounds 10% of the next quarter's production needs 23,000 pounds • Raw material costs $ 0.80 per pound 17 • Raw materials purchases are paid 60% in the quarter the purchases are made 18 and 40% in the quarter following purchase 19 • Accounts payable for raw materials, beginning balance $ 81,500
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: Year 2 Quarter Year 3 Quarter Data 1 2 Budgeted unit sales 45,000 65,000 3 120,000 4 1 2 60,000 80,000 100,000 Selling price per unit $7 1 Chapter 8: Applying Excel 2 3 Data 4 A B C D E F G 1 2 3 4 Year 3 Quarter 1 2 45,000 65,000 120,000 60,000 80,000 100,000 5 Budgeted unit sales 6 7 Selling price per unit 8 Accounts receivable, beginning balance 9 • Sales collected in the quarter sales are made EA $ 7 per unit 65,000 75% 10 11 12 • Finished goods inventory, beginning 13 14 34 • Raw materials required to produce one unit • Desired ending inventory of raw materials is 15 16 56 Raw materials inventory, beginning • Sales collected in the quarter after sales are made Desired ending finished goods inventory is 25% 30% of the budgeted unit sales of the next quarter 12,000 units 5 pounds 10% of the next quarter's production needs 23,000 pounds • Raw material costs $ 0.80 per pound 17 • Raw materials purchases are paid 60% in the quarter the purchases are made 18 and 40% in the quarter following purchase 19 • Accounts payable for raw materials, beginning balance $ 81,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
I need help filling in all the blanks on my excel sheet
Transcribed Image Text: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:
Year 2 Quarter
Year 3 Quarter
Data
1
2
Budgeted unit sales
45,000
65,000
3
120,000
4
1
2
60,000
80,000
100,000
Selling price per unit
$7
1 Chapter 8: Applying Excel
2
3
Data
4
A
B
C
D
E
F
G
1
2
3
4
Year 3 Quarter
1
2
45,000
65,000
120,000
60,000
80,000
100,000
5 Budgeted unit sales
6
7 Selling price per unit
8
Accounts receivable, beginning balance
9
• Sales collected in the quarter sales are made
EA
$
7 per unit
65,000
75%
10
11
12
• Finished goods inventory, beginning
13
14
34
• Raw materials required to produce one unit
• Desired ending inventory of raw materials is
15
16
56
Raw materials inventory, beginning
• Sales collected in the quarter after sales are made
Desired ending finished goods inventory is
25%
30% of the budgeted unit sales of the next quarter
12,000 units
5 pounds
10% of the next quarter's production needs
23,000 pounds
• Raw material costs
$
0.80 per pound
17
• Raw materials purchases are paid
60% in the quarter the purchases are made
18
and
40% in the quarter following purchase
19
• Accounts payable for raw materials, beginning balance
$
81,500
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education