Exercise 8-14 Sales and Production Budgets [LO8-2, LO8-3] The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account):    1st Quarter2nd Quarter3rd Quarter4th QuarterBudgeted unit sales12,50013,50015,50014,500   The selling price of the company's product is $24 per unit

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Exercise 8-14 Sales and Production Budgets [LO8-2, LO8-3]

The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account):

 

 1st Quarter2nd Quarter3rd Quarter4th QuarterBudgeted unit sales12,50013,50015,50014,500

 

The selling price of the company's product is $24 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 $73,200.

 

The company expects to start the first quarter with 2,500 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 2,700 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.

 

On Required 1, I need to: Calculate the estimated sales for each quarter of the fiscal year and for the year as a whole. Quarters 1-4, that equal the year

For Required 2, I need to: Calculate the expected cash collections for each quarter of the fiscal year and for the year as a whole for Quarters 1-4 that equal the year

Required 3: Calculate the required production in units of finished goods for each quarter of the fiscal year and for the year as a whole. Quarters 1-4, followed by year