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What are the total expected cash collections for the year under this revised budget?       b. What is the total required production for the year under this revised budget?       c. What is the total cost of raw materials to be purchased for the year under this revised budget?       d. What are the total expected cash disbursements for raw materials for the year under this revised budget

What are the total expected cash collections for the year under this revised budget?       b. What is the total required production for the year under this revised budget?       c. What is the total cost of raw materials to be purchased for the year under this revised budget?       d. What are the total expected cash disbursements for raw materials for the year under this revised budget

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 6CE: Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following...
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a. What are the total expected cash collections for the year under this revised budget?

 

 

 

b. What is the total required production for the year under this revised budget?

 

 

 

c. What is the total cost of raw materials to be purchased for the year under this revised budget?

 

 

 

d. What are the total expected cash disbursements for raw materials for the year under this revised budget?

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: Data Budgeted unit sales. Selling price per unit. 1 2 3 4 5 6 Chapter 8: Applying Excel Data Budgeted unit sales 7. Selling price per unit 8 9 A 1 50,000 $7 Accounts receivable, beginning balance Year 2 Quarter 2 3 70,000 110,000 • 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 12 Finished goods inventory, beginning 13 Raw materials required to produce one unit 14. Desired ending inventory of raw materials is 15. Raw materials inventory, beginning 16. Raw material costs 17. Raw materials purchases are paid 18 and 19 Accounts payable for raw materials, beginning balance $ $ $ $ B 1 4 70,000 50,000 с 2 7 per unit Year 3 Quarter 1 2 90,000 95,000 70,000 D 3 110,000 5 pounds 10% of the next quarter's production needs 23,000 pounds E 0.80 per pound 60% in the quarter the purchases are made 40% in the quarter following purchase 81,500 4 65,000 75% 25% 30% of the budgeted unit sales of the next quarter 12,000 units 70,000 F Year 3 Quarter 1 90,000 G 2 95,000
Transcribed Image Text: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: Data Budgeted unit sales. Selling price per unit. 1 2 3 4 5 6 Chapter 8: Applying Excel Data Budgeted unit sales 7. Selling price per unit 8 9 A 1 50,000 $7 Accounts receivable, beginning balance Year 2 Quarter 2 3 70,000 110,000 • 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 12 Finished goods inventory, beginning 13 Raw materials required to produce one unit 14. Desired ending inventory of raw materials is 15. Raw materials inventory, beginning 16. Raw material costs 17. Raw materials purchases are paid 18 and 19 Accounts payable for raw materials, beginning balance $ $ $ $ B 1 4 70,000 50,000 с 2 7 per unit Year 3 Quarter 1 2 90,000 95,000 70,000 D 3 110,000 5 pounds 10% of the next quarter's production needs 23,000 pounds E 0.80 per pound 60% in the quarter the purchases are made 40% in the quarter following purchase 81,500 4 65,000 75% 25% 30% of the budgeted unit sales of the next quarter 12,000 units 70,000 F Year 3 Quarter 1 90,000 G 2 95,000
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