The marketing department of Jessi Corporation has submitted the following sales

Question

The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account): 1st Quarter 12,000 2nd Quarter 13,000 3rd Quarter 15,000 4th Quarter 14,000 Budgeted unit sales The selling price of the company's product is $19 per unit. Management expects to collect 65% of sales in the quarter in which the sales are made, 30% 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 $72,200 The company expects to start the first quarter with 2,400 units in finished goods inventory. Management desres an ending finished goods inventory in each quarterequal to 20% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 2,600 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

Explanation / Answer

1. Sales Budget :

1b) Schedule of expected cash collection :

2) Production budget :

1st quarter 2nd quarter 3rd quarter 4th quarter Year Budgeted unit sales 12000 13000 15000 14000 54000 Sale price 19 19 19 19 19 Budgeted sales 228000 247000 285000 266000 1026000

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