The marketing department of Jessi Corporation has submitted the following sales
ID: 2553806 • Letter: T
Question
The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account):
The selling price of the company’s product is $18 per unit. Management expects to collect 75% of sales in the quarter in which the sales are made, 20% in the following quarter, and 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, is $72,000.
The company expects to start the first quarter with 1,785 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 15% of the next quarter’s budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,985 units.
Required:
1. Calculate the estimated sales for each quarter of the fiscal year and for the year as a whole.
2. Calculate the expected cash collections for each quarter of the fiscal year and for the year as a whole.
3. Calculate the required production in units of finished goods for each quarter of the fiscal year and for the year as a whole.
Calculate the estimated sales for each quarter of the fiscal year and for the year as a whole.
Calculate the expected cash collections for each quarter of the fiscal year and for the year as a whole.
Calculate the required production in units of finished goods for each quarter of the fiscal year and for the year as a whole.
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted unit sales 11,900 12,900 14,900 13,900Explanation / Answer
1.
SALES BUDGET
2.
CASH RECEIPTS BUDGET
3.
1st quarter 2nd quarter 3nd quarter 4th quarter Year Sales in units 11,900 12,900 14,900 13,900 53,600 Selling price per unit 18 18 18 18 18 Sales 214,200 232,200 268,200 250,200 964,800Related Questions
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