$1$

Required information

The Chapter $8$ Form worksheet shown below recreates the Review Problem in the text.

Requirement $2$:

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:

$\backslash$table$[[$Data$,$Year $2$ Quarter,Year $3$ Quarter$],[\backslash$bar $(1),2,3,4,1,2],[$Budgeted unit sales,$50,080,65,800,105,000,75,080,80,000,90,080],[$Selling price per unit,$$7,,,,,]]$

$\backslash$table$[[,$A$,,$B$,$c$,$D$,$E$,$F$,$G$],[1,$Chapter $8$: Applying Excel,,,,,,,$],[2],[3,$Data,,,,,,Year $3$ Quarter$],[4,,,1,2,3,4,1,2],[5,$Budgeted unit sales,,$50,000,\{$:$65,000$:$\},105,000,75,000,80,000,90,000],[6,,,,,,,,],[7,\backslash$table$[[-$ Selling price per unit$]],$$$,7,$per unit,,,,$],[8,-$ Accounts receivable, beginning balance,$$,65,000,,,,,],[9,-$ Sales collected in the quarter sales are made,,$75\%,,,,,],[(10)/(10),-$ Sales collected in the quarter after sales are made,,$25\%,,,,,],[(11)/(11),-$ Desired ending finished goods inventory is$,,30\%,$of the budgeted unit sales of the next quarter$],[(11)/(12),-$ Finished goods inventory, beginning,,$12,000,$units,,,,$],[(12)/(13),-$ Raw materials required to produce one unit,,$5,$pounds,,,,$],[,-$ Desired ending inventory of raw materials is$,,10\%,$of the next quarter's production needs$],[(14)/(15),-$ Raw materials inventory, beginning,,$23,000,$pounds,,,,$],[15,\backslash$table$[[$Raw material costs$]],$$$,0\mathrm{.}80,$per pound,,,,$],[16,-$ Raw materials purchases are paid,,$60\%,$in the quarter the purchases are made$],[17,$and,,$40\%,$in the quarter following purchase$],[18,-$ Accounts payable for raw materials, beginning balance,$$,81,500,,,,,]]$

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

e$.$ After seeing this revised budget, the production manager cautioned that due to the limited availability of a complex milling machine, the plant can produce no more than $80,000$ units in any one quarter. Is this a potential problem?