a. What are the total expected cash collections for the year under this revised budget?Expected cash collections for the yearb. What is the total required production for the year under this revised budget?Total required production for the yearc. 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 yeard. 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 sellingprice from $8 to $7. The marketing manager would like to use the following projections in the budget:DataBudgeted unit sales.Selling price per unit1 Chapter 8: Applying Excel2345678091011121314567891516171819DataBudgeted unit salesA145,000$7Year 2 Quarter2370,000 105,000Selling price per unitAccounts 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 isFinished goods inventory, beginningRaw materials required to produce one unit• Desired ending inventory of raw materials isRaw materials inventory, beginningRaw material costsRaw materials purchases are paidandAccounts payable for raw materials, beginning balance$$$$B1465,00045,000C27 per unitYear 3 Quarter190,00070,000290,000D3105,0005 pounds10% of the next quarter's production needs23,000 poundsE0.80 per pound60% in the quarter the purchases are made40% in the quarter following purchase81,500465,00075%25%30% of the budgeted unit sales of the next quarter12,000 units65,000FYear 3 Quarter190,000G290,000

Budgeting - Budgeting is the process of estimating future operations based on past performance. %…

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

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter9: Profit Planning And Flexible Budgets

Section: Chapter Questions

Problem 50E: Use the following information for Exercises 9-50 and 9-51: Assume that Stillwater Designs produces...