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The marketing department of Jessi Corporation has submitted the following sales

ID: 2556087 • 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) 1st Quarter2nd Quarter 3rd Quarter 4th Quarter 13,900 Budgeted unit sales11,900 12,900 14.9001 The selling price of the company's product is S18 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 quarters budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,985 units Required: 1-a Complete the company's sales budget Jessi Corporation Sales Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Budgeted units sales Selling price per unit Total sales 1-b. Complete the schedule of expected cash collections Schedule of Expected Cash Colections 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Beginning accounts receivable 1st Quarter sales 2nd Quarter sales 3ed Quarter sales 4th Quarter sales Total ca?h collections 2 Prepare the company's production budget for the upcoming fiscal year 0 Type here to search

Explanation / Answer

Jessi Corporation

Sales Budget

               1st Quarter 2nd Quarter 3rd Quarter    4th Quarter          Year

                     11,900       12,900            14,900          13,900             53,600

                      $18              18                 18                   18                18

Total sales $214,200     $232,200     $268,200         $250,200      $9,64,800

Schedule of Expected Cash Collections

                                    1st Quarter        2nd Quarter        3rd Quarter        Year

Beginning                        $72000                                                                     72,000

Accounts Receivable

1st Quarter Sales             160,650            42,840                                                203,490

2nd Qyarter Sales                                    174,150         46,440                          220,590

3rd Quarter Sales                                                            201,150        53,640       254,790

4th Quarter Sales                                                                                 187,650      187,650

Total Cash Collection 232,650           216,990               247,590       241,290           938,520