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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 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 Budgeted unit sales Selling price per unit 45,000 $7 70,000 120,000 60,000 80,000 95,000 A B D Chapter 8: Applying Excel 2 3 Data Year 3 Quarter 4 1 2 3 4. Budgeted unit sales 45,000 70,000 120,000 60.000 80,000 95,000 6 7 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 Sales collected in the quarter after sales are made 25% 11 Desired ending finished goods inventory is 30% of the budgeted unit sales of the next quarter • Finished goods inventory, beginning • Raw materials required to produce one unit 12 12,000 units 5 pounds 10% of the next quarter's production needs 23,000 pounds 13 14 • Desired ending inventory of raw materials is 15 · Raw materials inventory, beginning 16 · 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

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 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 Budgeted unit sales Selling price per unit 45,000 $7 70,000 120,000 60,000 80,000 95,000 A B D Chapter 8: Applying Excel 2 3 Data Year 3 Quarter 4 1 2 3 4. Budgeted unit sales 45,000 70,000 120,000 60.000 80,000 95,000 6 7 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 Sales collected in the quarter after sales are made 25% 11 Desired ending finished goods inventory is 30% of the budgeted unit sales of the next quarter • Finished goods inventory, beginning • Raw materials required to produce one unit 12 12,000 units 5 pounds 10% of the next quarter's production needs 23,000 pounds 13 14 • Desired ending inventory of raw materials is 15 · Raw materials inventory, beginning 16 · 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

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
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 51E
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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 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 1 2 Budgeted unit sales Selling price per unit 45,000 $7 70,000 120,000 60,000 80,000 95,000 A. B D E G 1 Chapter 8: Applying Excel 2 Data Year 3 Quarter 4 1 2 3 4 1 2 5 Budgeted unit sales 45,000 70,000 120,000 60,000 80,000 95,000 6. 7 · Selling price per unit - Accounts receivable, beginning balance 9 · Sales collected in the quarter sales are made Sales collected in the quarter after sales are made $ 7 per unit 8 $ 65,000 75% 10 25% 11 · Desired ending finished goods inventory is 12 · Finished goods inventory, beginning 13 · Raw materials required to produce one unit 30% of the budgeted unit sales of the next quarter 12,000 units 5 pounds 14 · Desired ending inventory of raw materials is 10% of the next quarter's production needs 15 · Raw materials inventory, beginning 23.000 pounds 16 · 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
Transcribed Image Text: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 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 1 2 Budgeted unit sales Selling price per unit 45,000 $7 70,000 120,000 60,000 80,000 95,000 A. B D E G 1 Chapter 8: Applying Excel 2 Data Year 3 Quarter 4 1 2 3 4 1 2 5 Budgeted unit sales 45,000 70,000 120,000 60,000 80,000 95,000 6. 7 · Selling price per unit - Accounts receivable, beginning balance 9 · Sales collected in the quarter sales are made Sales collected in the quarter after sales are made $ 7 per unit 8 $ 65,000 75% 10 25% 11 · Desired ending finished goods inventory is 12 · Finished goods inventory, beginning 13 · Raw materials required to produce one unit 30% of the budgeted unit sales of the next quarter 12,000 units 5 pounds 14 · Desired ending inventory of raw materials is 10% of the next quarter's production needs 15 · Raw materials inventory, beginning 23.000 pounds 16 · 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
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 be purchased for the year d. What are the total expected cash disbursements for raw materials for the year under this revised budget? < Prev 6 of 6 Next >
Transcribed Image Text: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 be purchased for the year d. What are the total expected cash disbursements for raw materials for the year under this revised budget? < Prev 6 of 6 Next >
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