Question

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); 1st Quarter 12,500 2nd Quarter 3rd Quarter 4th Quarter 13,500 15,500 14,500 points Budgeted unit sales 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. eBook Print 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. References 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 expected cash collections for each quarter of the fiscal year and for the year as a whole. Year 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter | $ 298,200 Total cash collections < Required 1 Required 3 >

Answer 1

1.

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Estimated unit sales	12,500	13,500	15,500	14,500	56,000

2.

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Estimated unit sales	12,500	13,500	15,500	14,500	56,000
x Cost per unit	$ 24	$ 24	$ 24	$ 24	$ 24
Total estimated sales revenue	$300,000	$324,000	$372,000	$348,000	$1,344,000
Collection from the same quarter sales (Total estimated sales x 0.75)	$225,000	$243,000	$279,000	$261,000	$1,008,000
Add: Receivable from previous quarter (Total estimated sales in previous quarter x 0.2)	$73,200	$60,000	$64,800	$74,400	$272,400
Total cash collection	$298,200	$303,000	$343,800	$335,400	$1,280,400

3.

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Estimated unit sales	12,500	13,500	15,500	14,500	56,000
Less: Beginning finished goods inventory (Estimated sales x 0.2)	2,500	2,700.0	3,100	2,900	11,200
Add: Ending finished goods inventory (Estimated sales units in following quarter x 0.2)	2,700	3,100	2,900	2,700	11,400
Required production in units	12,700	13,900	15,300	14,300	56,200