?| CH 7 MASTER BUDGET! × Chegg Study l Guided Solut + ? ? O fù |Oezto.mheducatio

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?| CH 7 MASTER BUDGET! × Chegg Study l Guided Solut + ? ? O fù |Oezto.mheducation.com/hm.tpx?--0.93399352972403691532304802053 m???? 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 Year 2 Quarter Year 3 Quarter 45,000 70,000 105,000 60,000 85,000 95,000 Budgeted unit sales Selling price per unit S7 per unit Chapter T: Applying Exce 3 Data 5 Budgeted unit sales Year 2 Quarter Year 3 Quarter 45,000 70,000 105,000 60,000 85,000 95,000 7Selling price per unit 8Accounts receivable, beginning balance 9Sales collected in the quarter sales are made 10 Sales collected in the quarter after sales are made 1Desired ending finished goods inventory is 2 Finished goods inventory, beginning 3 .Raw materials required to produce one unt 14Desired ending inventory of raw materials is 5Raw materials inventory 16 Raw material costs 17Raw materials purchases are paid 18 and 19Accounts payable for raw materials, beginning balance S8 per unit 565,000 75% 25% 30% of the budgeted unit sales of the next quarter 12,000 units 5 pounds 10% of the next quarters production needs 23,000 pounds $0.80 per pound 60% in the quarter the purchases are made 40% inthe quarter following purchase $81,500 O Type here to search 5:22 PM 7/22/2013 ^ f

Explanation / Answer

a)

315000

cash collections = 1920000

2)Total required production :

unit to produced = 293500

c)

Total cost of material purchased =1190800

d)

Cash disbursement = [cost of material purchase of first 3 quarters] + [cost of material purchase of 4 quarter * % paid]

   =[229800+326400+356400]+[278200*..60]

     = 912600+ 166920

    = 1079520

1 2 3 4 Total sales 45000*7=315000 70000*7= 490000 105000*7=735000 60000*7= 420000 cash collections : Beginning balance 65000 65000 1quarter sales collectons 315000*.75=236250 315000*.25= 78750

315000

2 490000*.75=367500 490000*.25= 122500 490000 3 735000*.75=551250 735000*.25= 183750 735000 4 420000*.75=315000 315000 1920000

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