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Help Save & Exit Submit Check my work The marketing department of Jessi Corporat

ID: 2569766 • Letter: H

Question

Help Save & Exit Submit Check my work The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account; 10 points Budgeted unit sales 12,600 13,600 15, 600 14,600 eBook The selling price of he company's product is $25 per unit Management expects to collect 65%of salesin the quarter n which the sales are made 30% n the following quarter, and 5% of sales are expected to be uncle receivable, all of which is expected to be collected in the first quarter, is $73,400. ble. The begin ng bas eee, ace s Print eferenc The company expects to start the first quarter with 2,520 units in finished goods inventory Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarters budgeted sales. The desired end the fourth quarter is 2,720 units fo shed go a e t y 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 Required 1 Required 2 Required 3 Calculate the estimated sales for each quarter of the fiscal year and for the year as a whole. 3rd Quarter 4th Qu 1st Quarter 2nd Quarter

Explanation / Answer

Answer

Working

Q1

Q2

Q3

Q4

Year

A (given)

Budgeted Units

12600

13600

15600

14600

56400

B (given)

Sale Price per unit

25

25

25

25

25

C= A x B

Sales Revenue $

315000

340000

390000

365000

1410000

Working

Q1

Q2

Q3

Q4

Year

A (calculated above)

Total Sales in $

315000

340000

390000

365000

1410000

B

Cash collected for

Last year's sale

[given] 73400

73400

Q1 Sales

[65%] 204750

[30%] 94500

299250

Q2 Sales

[65%] 221000

[30%] 102000

323000

Q3 Sales

[65%] 253500

[30%] 117000

370500

Q4 Sales

[65%] 237250

237250

C

Total collections

278150

315500

355500

354250

1303400

Working

Q1

Q2

Q3

Q4

Year

A [given]

Budgeted Units

12600

13600

15600

14600

56400

B=20% of next quarter’s ‘A’

Required ending inventory

2720

3120

2920

2720 [given]

2720

C=A+B

Total requirement

15320

16720

18520

17320

59120

D=’B’ of last quarter

Opening Inventory

[given] 2520

2720

3120

2920

2520

E=C - D

Required production of units

12800

14000

15400

14400

56600

Working

Q1

Q2

Q3

Q4

Year

A (given)

Budgeted Units

12600

13600

15600

14600

56400

B (given)

Sale Price per unit

25

25

25

25

25

C= A x B

Sales Revenue $

315000

340000

390000

365000

1410000