10.00 poins The marketing department of Jessi Corporation has submited the follo

Question

10.00 poins The marketing department of Jessi Corporation has submited the following sales forecast for the upooming fscal year (all sales are on account) 11,200 12.200 14.200 13.200 The selg price of te oompany's product is $1 1 per unt. Management expects to colect66% of sales in the oater in which the sales are made, 30% inthe foloaing quarter, and 5% of sales are expec tobe uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, is $70,800 The company expects to start the first quarter with 1,880 units in frished goods iventory. Management es arening frished goods in entry in each quarter equal to 15% ofthe next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,880 units. Required 1-a. Complete the company's sales budget Jessi 1st Quarter 2nd Quarter 4th Budgeted units sales Selling prioe per unit Total sales 1-b. Complete the schedule of expected cash collections Schedule of Expected Cash Collections 1st Quarter 2nd 3rd Beginning accounts recelivable 1st Quarter sales 2nd Quarter sales 3rd Quarter sales 4h Quarter sales Total cash collections 2. Prepare the company's production budget fox the upooming fisoal year 1st Budgeted unit sales Total needs Required production in units

Explanation / Answer

SALES BUDGET Q-1 Q-2 Q-3 Q-4 YEAR Budgeted Sales units 11,200 12,200 14,200 13,200 50,800 Selling price per unit 11 11 11 11 11 Total Sales 123,200 134,200 156,200 145,200 558,800 EXPECTED CASH COLLECTIONS Q-1 Q-2 Q-3 Q-4 YEAR Beginning Accounts receivable 70,600 70600 Quarter-1 sales 80,080 36960 117040 Quarter-2 Sales 87230 40260 127490 Quarter-3 Sales 101,530 46,860 148390 Quarter-4 Ssales 94,380 94380 Total Cash Collections 150,680 124,190 141,790 141,240 557900 PRODUCTION BUDGET Q-1 Q-2 Q-3 Q-4 YEAR Budgeted Sales Units 11,200 12,200 14,200 13,200 50,800 Add: Desired Ending Finished inventory 1,830 2,130 1,980 1,880 1,880 Total Needs 13,030 14,330 16,180 15,080 52,680 Less: Beginning Finished Inventory 1,680 1,830 2,130 1,980 1,680 Required Production in units 11,350 12,500 14,050 13,100 51,000

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