Question

The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account): 2nd Quarter Budgeted unit sales 1st Quarter 12,200 and Quarter 13,00 Sed Quarter 15,300 15,300 Quarter 14,200 14,200 The selling price of the company's product is $22 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 $72,800. The company expects to start the first quarter with 2,460 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 2,660 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 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 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total sales Required 2 >

Answer 1

	1	2	3	4	Year
Budgeted Unit Sales	12,300	13,300	15,300	14,300	55,200
Selling price per unit	22	22	22	22	22
Total Sales	270,600	292,600	336,600	314,600	1,214,400
	1	2	3	4	Year
75% in the same quarter	202,950	219,450	252,450	235,950	910,800
20% in following quarter	72800	54,120	58,520	67,320	252760
Total cash collections	275,750	273,570	310,970	303,270	1,163,560
	1	2	3	4	Year
Budgeted Unit Sales	12,300	13,300	15,300	14,300	55,200
Add: Desired Ending Inventory	2,660	3,060	2,860	2660	2660
Total Required	14,960	16,360	18,160	16,960	57,860
Less: Beginning Inventory	2460	2,660	3,060	2,860	2460
Required Production	12,500	13,700	15,100	14,100	55,400