Question

please help this is due tonight! thank you!

Check my work 2 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: Part 2 of 2 Year 2 Quarter Year 3 Quarter Data Budgeted unit sales Selling price per unit 50,000 65,000 105,000 65,000 85,00 95,000 15 $7 1 Chapter 8: Applying Excel 2 3 Data Year 3 Quarter 5 Budgeted unit sales 6 7Selling price per unit 8 Accounts 9 Sales collected in the quarter sales are made 10 Sales collected in the quarter after sales are made 11 Desired ending finished goods inventory is 50,000 65,000 105,000 65,000 85,000 95,000 7 per unit receivable, beginning balance $ 65,000 75% 25% 30%) of the budgeted unit sales of the next quarter Graw Hill KPre 012 Next > Required information 12Finished goods inventory, beginning 13Raw materials required to produce one unit 14Desired ending inventory of raw materials is 15Raw materials inventory, beginning 16Raw material costs 17Raw materials purchases are paid 18 and 19 Accounts payable for raw materials, beginning balance 81,500 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 a. What are the total expected cash collections for the year under this revised budget? ted cash collections for the year Required information b. What is the total required production for the year under this revised budget? Total required production for the year C. What is the total cost of raw materials to be purchased for the year under this revised budget? Total cost of raw materials to be purchased for the year

Answer 1

Finished Goods Produced
Sales	50000	65000	105000	65000
Closing	19500	31500	19500	25500
Less : - Opening	12000	19500	31500	19500
Production	57500	77000	93000	71000	298500
Raw Material Purchased
Production	287500	385000	465000	355000
Closing	38500	46500	35500	44000
Less : - Opening	23000	38500	46500	35500
	303000	393000	454000	363500	1513500
* Rate	0.8	0.8	0.8	0.8
Purchases	242400	314400	363200	290800	1210800
Payable Paid
Opening	81500
Current * 60%	145440	188640	217920	174480
Previous * 40%	81500	96960	125760	145280
Total Payment	226940	285600	343680	319760	1175980

1. Cash Collections would be :-

Opening Accounts Receivable + Sales collection of starting 3 quarters + 75 % of 4th quarter sales

= 65000$ + (50000 + 65000 + 105000) * 7 + (65000 * 7 * 75 %)

= 65000 $ + 1,540,000$ + 341,250$

= 1,946,250 $

2.)   Production would be :-

Sales + Closing - Opening

=(50,000 + 65000 + 105,000+ 65000) + (85000*30%) -12,000

= 285,000 + 25,500 - 12,000

= 298,500 $ ANS

3.) Cost of Raw Material To Be Purchased

  Quarter 1 Year 3 Production =Sales + Closing - Opening

= 85000 + (95000 * 30%) - 25500

= 88,000 units

Raw Material Required = 88000 * 5 = 4,40,000 pounds

Raw Material to be Purchased = ((298500*5 + (88000 * 10%*5) - 23000)

= 1492500 + 44000 -23000 = 1,513,500 pounds

Total Cost = 1513500 * .80 = 1,210,800$

4.) Based on the Table attached above Answer = 1,175,980 $

5.) Yes, it is a potential problem as Budgeted production in 3rd quarter is 93000 which is more than the capacity.

Thank You

Hoping for a Positive Response