| Construct the raw materials purchases budget???? | | | | | | | |
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| Data | Year 2 Quarter | Year 3 Quarter | |
| | 1 | 2 | 3 | 4 | 1 | 2 | |
| Budgeted unit sales | 40,000 | 60,000 | 100,000 | 50,000 | 70,000 | 80,000 | |
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| Selling price per unit | $8 | per unit | | | | | |
| Accounts receivable, beginning balance | $65,000 | | | | | | |
| Sales collected in the quarter sales are made | 75% | | | | | | |
| Sales collected in the quarter after sales are made | 25% | | | | | | |
| Desired ending finished goods inventory is | 30% | of the budgeted unit sales of the next quarter | | |
| Finished goods inventory, beginning | 12,000 | units | | | | | |
| Raw materials required to produce one unit | 5 | pounds | | | | | |
| Desired ending inventory of raw materials is | 10% | of the next quarter's production needs | | | |
| Raw materials inventory, beginning | 23,000 | pounds | | | | | |
| Raw material costs | $0.80 | per pound | | | | | |
| Raw materials purchases are paid | 60% | in the quarter the purchases are made | | | |
| and | 40% | in the quarter following purchase | | | |
| Accounts payable for raw materials, beginning balance | $81,500 | | | | | | |
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| Enter a formula into each of the cells marked with a ? below | | | | | | |
| Review Problem: Budget Schedules | | | | | | | |
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| Construct the sales budget | Year 2 Quarter | Year 3 Quarter | |
| | 1 | 2 | 3 | 4 | 1 | 2 | |
| Budgeted unit sales | 40,000 | 60,000 | 100,000 | 50,000 | 70,000 | 80,000 | |
| Selling price per unit | 8 | 8 | 8 | 8 | 8 | 8 | |
| Total sales | $320,000 | $480,000 | $800,000 | $400,000 | $560,000 | $640,000 | |
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| Construct the schedule of expected cash collections | Year 2 Quarter | | | |
| | 1 | 2 | 3 | 4 | Year | | |
| Accounts 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 collections | $ 305,000 | $ 440,000 | $ 720,000 | $ 500,000 | $ 1,965,000 | | |
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| Construct the production budget | Year 2 Quarter | | Year 3 Quarter |
| | 1 | 2 | 3 | 4 | Year | 1 | 2 |
| Budgeted unit sales | 40,000 | 60,000 | 100,000 | 50,000 | 250,000 | 70,000 | 80,000 |
| Add desired finished goods inventory | 18,000 | 30,000 | 15,000 | 21,000 | 84,000 | 24,000 | |
| Total needs | 58,000 | 90,000 | 115,000 | 71,000 | 334,000 | 94,000 | |
| Less beginning inventory | 12,000 | 18,000 | 30,000 | 15,000 | 75,000 | 21,000 | |
| Required production | 46,000 | 72,000 | 85,000 | 56,000 | 259,000 | 73,000 | |
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| Construct the raw materials purchases budget | Year 2 Quarter | | Year 3 Quarter | |
| | 1 | 2 | 3 | 4 | Year | 1 | |
| Required production (units) | ? | ? | ? | ? | ? | ? | |
| Raw materials required to produce one unit | ? | ? | ? | ? | ? | ? | |
| Production needs (pounds) | ? | ? | ? | ? | ? | ? | |
| Add desired ending inventory of raw materials (pounds) | ? | ? | ? | ? | ? | | |
| Total needs (pounds) | ? | ? | ? | ? | ? | | |
| Less beginning inventory of raw materials (pounds) | ? | ? | ? | ? | ? | | |
| Raw materials to be purchased | ? | ? | ? | ? | ? | | |
| Cost of raw materials per pound | ? | ? | ? | ? | ? | | |
| Cost of raw materials to be purchased | ? | ? | ? | ? | ? | | |
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| Construct the schedule of expected cash payments | Year 2 Quarter | | | |
| | 1 | 2 | 3 | 4 | Year | | |
| Accounts payable, beginning balance | $ 81,500 | | | | $ 81,500 | | |
| First-quarter purchases | 116,640 | $ 77,760 | | | $ 194,400 | | |
| Second-quarter purchases | | 175,920 | $ 117,280 | | $ 293,200 | | |
| Third-quarter purchases | | | 197,040 | $ 131,360 | $ 328,400 | | |
| Fourth-quarter purchases | | | | 138,480 | $ 138,480 | | |
| Total cash disbursements | $ 198,140 | $ 253,680 | $ 314,320 | $ 269,840 | $ 1,035,980 | | |
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