Help Save & Exit Submit Check my work The marketing department of Jessi Corporat
ID: 2569766 • Letter: H
Question
Help Save & Exit Submit Check my work The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account; 10 points Budgeted unit sales 12,600 13,600 15, 600 14,600 eBook The selling price of he company's product is $25 per unit Management expects to collect 65%of salesin the quarter n which the sales are made 30% n the following quarter, and 5% of sales are expected to be uncle receivable, all of which is expected to be collected in the first quarter, is $73,400. ble. The begin ng bas eee, ace s Print eferenc The company expects to start the first quarter with 2,520 units in finished goods inventory Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarters budgeted sales. The desired end the fourth quarter is 2,720 units fo shed go a e t y 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 Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Calculate the estimated sales for each quarter of the fiscal year and for the year as a whole. 3rd Quarter 4th Qu 1st Quarter 2nd QuarterExplanation / Answer
Answer
Working
Q1
Q2
Q3
Q4
Year
A (given)
Budgeted Units
12600
13600
15600
14600
56400
B (given)
Sale Price per unit
25
25
25
25
25
C= A x B
Sales Revenue $
315000
340000
390000
365000
1410000
Working
Q1
Q2
Q3
Q4
Year
A (calculated above)
Total Sales in $
315000
340000
390000
365000
1410000
B
Cash collected for
Last year's sale
[given] 73400
73400
Q1 Sales
[65%] 204750
[30%] 94500
299250
Q2 Sales
[65%] 221000
[30%] 102000
323000
Q3 Sales
[65%] 253500
[30%] 117000
370500
Q4 Sales
[65%] 237250
237250
C
Total collections
278150
315500
355500
354250
1303400
Working
Q1
Q2
Q3
Q4
Year
A [given]
Budgeted Units
12600
13600
15600
14600
56400
B=20% of next quarter’s ‘A’
Required ending inventory
2720
3120
2920
2720 [given]
2720
C=A+B
Total requirement
15320
16720
18520
17320
59120
D=’B’ of last quarter
Opening Inventory
[given] 2520
2720
3120
2920
2520
E=C - D
Required production of units
12800
14000
15400
14400
56600
Working
Q1
Q2
Q3
Q4
Year
A (given)
Budgeted Units
12600
13600
15600
14600
56400
B (given)
Sale Price per unit
25
25
25
25
25
C= A x B
Sales Revenue $
315000
340000
390000
365000
1410000
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