SALESDA960AR I wridey Atant c Repon Reado-epog ucsecryNOw e@Lps car puste Logne,

Question

SALESDA960AR I wridey Atant c Repon Reado-epog ucsecryNOw e@Lps car puste Logne,orroe seoles: Offce Srved The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal yer (all sales are on account Budgeted wnit sales 12,500 13, 500 15, 500 14,500 The selling pnce of the company's product is $24 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 $73.200 The company expects to start the first quarter with 2,500 units in finished goods inventory Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarter's budgeted sales The desired ending finished goods inventory for the fourth quarter is 2,700 units Required: 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 inished goods for each quarter of the fscal year and for the year as a whole Complete this question by entering your answvers in the tabs below. Calculate the estimated sales for osch quarter of the fiscal year and for the year as a whole Required 2

Explanation / Answer

1 Sales budget Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Units 12500 13500 15500 14500 56000 Per unit price 24 24 24 24 24 Total sales 300000 324000 372000 348000 1344000 2 Budgeted Cash receipt Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Current Quarter 225000 243000 279000 261000 1008000 Prior Quarter 73200 60000 64800 74400 272400 Total collection 298200 303000 343800 335400 1280400 3 Purchase budget Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Sales in units 12500 13500 15500 14500 56000 Ending inventory 2700 3100 2900 2700 2700 Requirement in units 15200 16600 18400 17200 58700 Less Beginning inventory 2500 2700 3100 2900 2500 Required production in Dollars 15400 17000 18200 17000 56200

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