Data Year 2 Quarter 2 60,000 Year 3 Quarter 2 80,000 Budgeted unit sales 40,000
ID: 2555966 • Letter: D
Question
Data Year 2 Quarter 2 60,000 Year 3 Quarter 2 80,000 Budgeted unit sales 40,000 100,000 50,000 70,000 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 Desired ending finished goods inventory is 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 $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 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 and Accounts payable for raw materials, beginning balance $81,500 Enter a formula into each of the cells marked with a? below Review Problem: Budget Schedules Year 2 Quarter 2 Year 3 Quarter 2 Construct the sales budget Budgeted unit sales Selling price per unit Total sales Construct the schedule of expected cash collections Year 2 Quarter Year Accounts receivable, beginning balance First-quarter sales Second-quarter sales Third-quarter sales Fourth-quarter sales Total cash collectionsExplanation / Answer
Prepartion of Sales Budget Year-2 , Quarter Year-3 Quarter 1 2 3 4 1 2 Sales Unit 40,000 60,000 100,000 50,000 70,000 80,000 Selling Price/Unit $8 $8 $8 $8 $8 $8 Budgeted Sales Value $320,000 $480,000 $800,000 $400,000 $560,000 $640,000 Schedule of Expected Cash Collection Year-2 , Quarter Year 1 2 3 4 Total Account Receivable, Beginning Balance $65,000 $65,000 First Quarter Sales $240,000 $80,000 $320,000 Second Quarter Sales $360,000 $120,000 $480,000 Third Quarter Sales $600,000 $200,000 $800,000 Fourth Quarter Sales $300,000 $300,000 Total Cash Collection $305,000 $440,000 $720,000 $500,000 $1,965,000 Schedule of Production Budget Year-2 , Quarter Year-3 Quarter 1 2 3 4 1 2 Add: Sales Unit 320,000 480,000 800,000 400,000 560,000 640,000 Less Ending Inventory (30% of Next Quarter Sales) 144,000 240,000 120,000 168,000 192,000 - Total Needs 464,000 720,000 920,000 568,000 752,000 640,000 Less: Beginning Inventory 12,000 144,000 240,000 120,000 168,000 192,000 Production Unit 452,000 576,000 680,000 448,000 584,000 448,000 Schedule of Raw Material Purchase Budget Year-2 , Quarter Year-3 Quarter 1 2 3 4 1 2 Production Unit 452,000 576,000 680,000 448,000 584,000 448,000 Add: Raw material Rquired for Prodcution Unit @ 5 Pound/Unit 2,260,000 2,880,000 3,400,000 2,240,000 2,920,000 2,240,000 Less: Ending Inventory ( in Pound) 10% of Next Quarter 288,000 340,000 224,000 292,000 224,000 - Total Needs in Pound 2,548,000 3,220,000 3,624,000 2,532,000 3,144,000 2,240,000 Less: Beginning Inventory (in Pound) 23,000 288,000 340,000 224,000 292,000 224,000 Total Raw Material Purchase ( Pound) 2,525,000 2,932,000 3,284,000 2,308,000 2,852,000 2,016,000 Price/Pound $0.80 $0.80 $0.80 $0.80 $0.80 $0.80 Total Raw Material Purchase Cost $2,020,000 $2,345,600 $2,627,200 $1,846,400 $2,281,600 $1,612,800 Schedule of Expected Cash Payment Year-2 , Quarter Year 1 2 3 4 Total Account payable, Beginning Balance $81,500 $81,500 First Quarter Purchase $1,212,000 $808,000 $2,020,000 Second Quarter Purchase $1,407,360 $938,240 $2,345,600 Third Quarter Purchase $1,576,320 $1,050,880 $2,627,200 Fourth Quarter Purchase $1,107,840 $1,107,840 Total Cash Collection $1,293,500 $2,215,360 $2,514,560 $2,158,720 $8,182,140
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