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Connect .> C Secure | https://newconnect.mheducation.com/flow/connect.html : Apps P Haiku Drive Q carly-redmond! Qui e TEC 313-STATISTICAL Saved Help Save & Exit Submit Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 8 Exercise 8-14 Sales and Production Budgets [LO8-2, L08-3] The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account) points 1st Quarter 11,880 2nd Quarter 12,903 3rd Quarter 14,880 4th Quarter 13,803 Budgeted unit sales The selling price of the company's product is $18.00 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 $70,200 The company expects to start the first quarter with 1,650 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 1,850 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 Mc Prev 8of9 Next > 1:01 AM O Type here to search

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2 Total cash collections: Quarter 1 198900 =70200+(198000*65%) Quarter 2 199800 =(198000*30%)+(216000*65%) Quarter 3 228600 =(216000*30%)+(252000*65%) Quarter 4 227700 =(252000*30%)+(234000*65%) 3 Required production in units: Quarter 1 11150 =11000+(12000*15%)-1650 Quarter 2 12300 =12000+(14000*15%)-(12000*15%) Quarter 3 13850 =14000+(13000*15%)-(14000*15%) Quarter 4 12900 =13000+1850-(13000*15%)

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