Accounting help. Basically, complete the cells that have a \'?\' in them. If you
ID: 341259 • Letter: A
Question
Accounting help. Basically, complete the cells that have a '?' in them. If you could tell me how you got that answer, I'd greatly appreciate it. Thank you.
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 • 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 Enter a formula into each of the cells marked with a ? below Review Problem: Budget Schedules Construct the sales budget Year 2 Quarter Year 3 Quarter 1 2 3 4 1 2 Budgeted unit sales ? ? ? ? ? ? Selling price per unit ? ? ? ? ? ? Total sales ? ? ? ? ? ? Construct the schedule of expected cash collections Year 2 Quarter 1 2 3 4 Year Accounts receivable, beginning balance ? ? First-quarter sales ? ? ? Second-quarter sales ? ? ? Third-quarter sales ? ? ? Fourth-quarter sales ? ? Total cash collections ? ? ? ? ? Construct the production budget Year 2 Quarter Year 3 Quarter 1 2 3 4 Year 1 2 Budgeted unit sales ? ? ? ? ? ? ? Add desired finished goods inventory ? ? ? ? ? ? Total needs ? ? ? ? ? ? Less beginning inventory ? ? ? ? ? ? Required production ? ? ? ? ? ? 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 ? ? ? ? ? Construct the schedule of expected cash payments Year 2 Quarter 1 2 3 4 Year Accounts payable, beginning balance ? ? First-quarter purchases ? ? ? Second-quarter purchases ? ? ? Third-quarter purchases ? ? ? Fourth-quarter purchases ? ? Total cash disbursements ? ? ? ? ?Explanation / Answer
Year 2 Year 3 Sales Budget: Q1 Q2 Q3 Q4 Q1 Q2 Budgeted Unit Sales 40000 60000 100000 50000 70000 80000 SP Per Unit 8.00 8.00 8.00 8.00 8.00 8.00 Total Sales 320000 480000 800000 400000 560000 640000 Year 2 Schedule of Expected Collection Q1 Q2 Q3 Q4 Year Accounts Recievable, Beg Balance 65,000 65,000 First-quarter sales 2,40,000 80,000 3,20,000 Second-quarter sales 3,60,000 1,20,000 4,80,000 Third-quarter sales 6,00,000 2,00,000 8,00,000 Fourth-quarter sales 3,00,000 3,00,000 Total cash collections 3,05,000 4,40,000 7,20,000 5,00,000 19,65,000 Year 2 Year 3 Production Budget: Q1 Q2 Q3 Q4 Q1 Q2 Budgeted Unit Sales 40000 60000 100000 50000 70000 80000 Add:Desired FG Inventory 18,000 30,000 15,000 21,000 24,000 (30% of Budgeted Unit of Next Quarter) Total Needs 58000 90000 115000 71000 94000 Less: Beginning Inventory 12,000 18,000 30,000 15,000 21,000 Required Production 46,000 72,000 85,000 56,000 73,000 Year 2 Year 3 Raw Material Purchase Budget: Q1 Q2 Q3 Q4 Q1 Q2 Required Production 46,000 72,000 85,000 56,000 73,000 Raw materials required to produce one unit 5 5 5 5 5 Production needs (pounds) 230000 360000 425000 280000 365000 Add desired ending inventory of raw materials (pounds) 36,000 42,500 28,000 36,500 (10% of Next Quarter's Required) Total needs (pounds) 2,66,000 4,02,500 4,53,000 3,16,500 Less beginning inventory of raw materials (pounds) 23,000 36,000 42,500 28,000 Raw materials to be purchased 2,43,000 3,66,500 4,10,500 2,88,500 Cost of raw materials per pound 0.80 0.80 0.80 0.80 Cost of raw materials to be purchased 1,94,400 2,93,200 3,28,400 2,30,800 Year 2 Schedule of Cash Payments: Q1 Q2 Q3 Q4 Year Accounts payable, beginning balance 81,500 81,500 First-quarter purchases 1,16,640 77,760 1,94,400 Second-quarter purchases 1,75,920 1,17,280 2,93,200 Third-quarter purchases 1,97,040 1,31,360 3,28,400 Fourth-quarter purchases 1,38,480 1,38,480 Total cash disbursements 1,98,140 2,53,680 3,14,320 2,69,840 10,35,980