Question

The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account): 1st Quarter 12,400 2nd Quarter 13,400 3rd Quarter 15,400 4th Quarter 14,400 Budgeted unit sales The selling price of the company's product is $23 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 $73.000. The company expects to start the first quarter with 2,480 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 2,680 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 Required Required 1 | 2 | Calculate the estimated sales for each quarter of the fiscal year and for the year as a whole. 1st 2nd Quarter Quarter 3rd Quarter 4th Quarter Year med Total sales Required 1 Required 2 >

Answer 1

Solutions:

F G H Particulars Budgeted Unit sales Selling Price per unit Budgeted Sales Jessi Corporation Company's Total Sales Ist Quarter 2nd quarter 3rd quarter 12400 13400 15400 $23.00 $23.00 $23.00 $285,200 $308,200 $354,200 4th quarter 14400 $23.00 $331,200 Year Total 55600 $23.00 $1,278,800 12 13 14 15 4th quarter Jessi Corporation Schedule of Expected Cash Collection Ist Quarter 2nd quarter 3rd quarter $73,000 $185,380 $85,560 $200,330 $92,460 $230,230 Particulars Accounts receivables, Beginning 1st Quarter sales 2nd Quarter sales 3rd Quarter sales 4th Quarter sales Total Cash collection 17 Year Total $73,000 $270,940 $292,790 $336,490 $215,280 $1,188,500 19 $106,260 $215,280) $321,540 $258,380 $285,890 $322,690 20 21 22 23 24 25 Jessi Corporation Production Budget Ist Quarter 2nd quarter | 3rd quarter | 4th quarter | 12400 13400 15400 14400 26 Year Total 55600 28 Particulars Budgeted unit sales Add: Required ending Inventory (20% of Following month Sale) Total Needs Less: Opening Inventory Required Production in units 29 2680 15080 2480 12600 3080 16480 2680 13800 2880 18280 3080 15200 2680 17080 2880 14200 2680 582801 2480 55800 30 32 33 34 35 36 37 38 40 41 42 43 44 46 47 48 49 50 et843 ) Sheet844 Sheet404 (6) Sheet248 (12) Sheet851