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For example, in cell B26 enter the formula = 85" Check your worksheet by changing the budgeted unit sales in Quarter 2 of Year 2 in cell C5 to 75,000 units. The required production for the year should be 274,000 units. The cost of raw materials to be purchased for the year should be $1,106,800, whereas the total cash disbursements for the year should be $1,095,980. If you do not get this answer find the errors in your worksheet and correct them. A1 x fe Chapter 8: Applying Excel B C D E F G H Chapter 3: Applying Excel Data 1 40,000 Yoar 2 Quarter 2 3 60,000 100,000 4 50,000 Year 3 Quarter 1 2 70,000 80,000 - Budgeted unit sales 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 1 Desired ending finished goods Inventory is 2. 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 Enter a fomula into each of the colls marked with a 7 below Review Problem: Budget Schedules $8 per unit $65,000 75% 25% 30% of the budgeted unit sales of the next quarter 12,000 units 5 pounds 10% of the noxt quarters production noods 23,000 pounds $0.80 per pound 60% in the quarter the purchases are made 40% in the quarter following purchase $81,500 Construct the sales budget 1 Budgeted unit sales Selling price per unit Total sales ? 2 ? Year 2 Quarter 3 ? ? ? 7 ? 2 ? ? 7 Yoar 3 Quarter + 2 2 2 2 7 2 7 Construct the schedule of expected cash collections Year 2 Quarter 2 3 1 Year 2 ? Accounts receivable, beginning balance First quarter sales Second quarter sales Third-quarter sales Fourth-quarter sales Total cash collections ? ? 2 ? 2 ? 7 2 2 ? 2 ? ? ? 2 Construct the production budget Year 2 Quarter 2 Year 3 Quarter Yoar Budgeted unit sales B D H E G ? 2 ? ? ? + 4 Year 2 ? ? 2 ? ? Yoar 2 Quarter 2 3 2 2 2 ? 7 ? ? 2 2 ? ? ? ? ? ? ? ? 2 7 Year 3 Quarter 1 2 ? ? 2 ? ? Year 3 Quarter Year 2 Quarter 2 3 1 Year 2 ? 2 7 ? ? ? 2 7 ? 7 2 ? 7 7 ? ? 7 87 Total cash collections 38 99 Construct the production budget 40 41 Budgeted unt sales 42 Add desired finished goods inventory 43 Total needs 44 Loss beginning inventory 45 Required production -46 47 Construct the raw materials purchases budget 48 49 Required production units) 50 Raw materials required to produce one unit 51 Production needs (pounds) 52 Add desired ending inventory of raw materiais pounds) 53 Total needs {pounds) 54 Loss beginning inventory of raw materials (pounds) 55 Raw materials to be purchased 56 Cost of raw materials per pound 57 Cost of raw materials to be purchased 58 59 Construct the schedule of expected cash payments 60 61 Accounts payablo, beginning balance 62. First quarter purchases 63 Second quarter purchases 64 Third quarter purchases 65 Fourth quarter purchases 66 Total cash disbursements 67 68 69 70 71 72 73 74 25 ? 2 2 ? ? ? ? ? ? ? ? ? 7 7 2 ? ? ? 2 7 ? 2 2 ? ? ? Year 2 Quarter 2 3 4 Year 2 2 ? ? 2 2 2 ? 7 ? 2 2 2 2 ? 7 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: Year 2 Quarter Year 3 Quarter Data 2 Budgeted unit sales 45,000 65,000 115,000 75,000 80,000 100,000 Selling price per unit $7 A B D E F G 1 Chapter 8: Applying Excel 2 1 3 4 2 65,000 Year 3 Quarter 1 80,000 2 100, 45,000 115,000 75,000 $ $ 3 Data 4 5 Budgeted unit sales 6 7 Selling price per unit 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 7 per unit 65.000 75% 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 B c D w F G Chapter 8: Applying Excel 1 2 3 Data 1 2 65,000 3 115,000 Year 3 Quarter 1 80,000 2 100,000 45,000 75,000 $ $ 4 5 Budgeted unit sales 6 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 1. Raw materials purchases are paid 18 and 19 1. Accounts payable for raw materials, beginning balance 7 per unit 65,000 75% 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 81,600 $ $ Required information 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 year purchased for the 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 current production constraint, a complex milling machine, the plant can produce no more than 90,000 units in any one quarter. Is this a potential problem? NO Yes