The marketing department of Jessi Corporation has submitted the following sales
ID: 2525411 • Letter: T
Question
The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account):
The selling price of the company’s product is $10 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 $70,400.
The company expects to start the first quarter with 1,665 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 1,865 units.
Complete the company's sales budget.
Complete the schedule of expected cash collections.
Prepare the company’s production budget for the upcoming fiscal year.
The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account):
Explanation / Answer
All Amounts are in $
Ans1-a. Company's sales budget is as under:-
Ans1-b. Collections in cash are as under
Ans2. The Company's Production budget for the fiscal year is as follows:
The formula for production is equal to -
Sales units + closing stock - opening stock
Particulars Quarter1 Quarter2 Quarter3 Quarter4 Sales Budget 111,000 121,000 141,000 131,000Related Questions
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