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SUBMIT ANSWERS USING CELL FORMULAS! Example: =C34-E21 1 Chapter 8: Applvina Exce

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Question

SUBMIT ANSWERS USING CELL FORMULAS! Example: =C34-E21

1 Chapter 8: Applvina Excel 3 Data 5 Budgeted unit sales Year 2 Quarter Year 3 Quarter 40,000 60,000 100,000 50,000 70,000 80,000 7 Selling price per unit $8 per unit $65,000 Accounts receivable, beqinning balance 9 Sales collected in the quarter sales are made 75% 25% 30% of the budgeted unit sales of the next quarter 10 Sales collected in the quarter after sales are made 11Desired ending finished goods inventory is 12.Finished goods inventory, beginning 13Raw materials required to produce one unit 14 Desired ending inventory of raw materials is 15 Raw materials inventory, beginning 12,000 units 5 pounds 10% of the next quarter's production needs 23,000 pounds 16Raw material costs 17Raw materials purchases are paid $0.80 per pound 60% in the quarter the purchases are made 40% in the quarter following purchase 18 and 19 .Accounts payable for raw materials, beginning balance 20 $81,500 21 Enter a formula into each of the cells marked with a? below 22 Review Problem: Budget Schedules 23 Year 2 Quarter Year 3 Quarter 24 Construct the sales budget 25 26 Budgeted unit sales 27 Selling price per unit 28 Total sales 29 30 Construct the schedule of expected cash collections 31 32 Accounts receivable, beginning balance 33 First-quarter sales 34 Second-quarter sales 35 Third-quarter sales 36 Fourth-quarter sales 37 Total cash collections 38 Year 2 Quarter Year 7

Explanation / 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