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 2nd Quarter 3rd Quarter 4th Quarter 13,900 Budgeted unit sales 11,900 12,900 14,900 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. Complete this question by entering your answers in the tabs below. Required1Required 2Required 3 Calculate the estimated sales for each quarter of the fiscal year and for the year as a whole. 1st Quarter 2nd Quarter 3rd Quarter4th Quarter Year Total sales

Explanation / Answer

Solution:-

a:- Sales for the quarter and the year:-

b) Calculation of Expected Cash Collections and year as a whole;-

c) Calculation of Producdtion units for each qtr and whole year:-

Particulars 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year Total Sales 214200 232200 268200 250200 964800 (11900*18) (12900*18) (14900*18) (13900*18)

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