A B C D E F G 1 Chapter 8: Applying Excel 2 3 Data 4 Year 3 Quarter 1 2 3 4 1 2 45,000 65,000 105,000 60,000 90,000 100,000 5 Budgeted unit sales 6 7 • Selling price per unit •Raw materials required to produce one unit 7 per unit $ 65,000 75% 00 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 14 15 16 • Raw material costs 17 • Raw materials purchases are paid 18 and 19 • Accounts payable for raw materials, beginning balance $ Desired ending inventory of raw materials is • Raw materials inventory, beginning 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 0.80 per pound 60% in the quarter the purchases are made 40% in the quarter following purchase 81,500

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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Question

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 3 4   1 2
Budgeted unit sales 45,000 65,000 105,000 60,000   90,000 100,000
Selling price per unit $7            

What are the total expected cash collections for the year under this revised budget?

A
B
C
D
E
F
G
1
Chapter 8: Applying Excel
2
3
Data
4
Year 3 Quarter
1
2
3
4
1
2
45,000
65,000
105,000
60,000
90,000
100,000
5 Budgeted unit sales
6
7
• Selling price per unit
•Raw materials required to produce one unit
7 per unit
$
65,000
75%
00
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
14
15
16
• Raw material costs
17
• Raw materials purchases are paid
18
and
19
• Accounts payable for raw materials, beginning balance
$
Desired ending inventory of raw materials is
• Raw materials inventory, beginning
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
0.80 per pound
60% in the quarter the purchases are made
40% in the quarter following purchase
81,500
Transcribed Image Text:A B C D E F G 1 Chapter 8: Applying Excel 2 3 Data 4 Year 3 Quarter 1 2 3 4 1 2 45,000 65,000 105,000 60,000 90,000 100,000 5 Budgeted unit sales 6 7 • Selling price per unit •Raw materials required to produce one unit 7 per unit $ 65,000 75% 00 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 14 15 16 • Raw material costs 17 • Raw materials purchases are paid 18 and 19 • Accounts payable for raw materials, beginning balance $ Desired ending inventory of raw materials is • Raw materials inventory, beginning 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 0.80 per pound 60% in the quarter the purchases are made 40% in the quarter following purchase 81,500
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