The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year:

The selling price of the company?s product is $20 per unit. Management expects to collect 65% of sales in the quarter in which the sales are made and 30% in the following quarter; 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which are expected to be collected in the first quarter, is $80,500. The company expects to start the first quarter with 2,000 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 2,250 units.

Required:

1. Prepare the company?s sales budget and schedule of expected cash collections.

2. Prepare the company?s production budget for the upcoming fiscal year.

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4th Quarter 2nd Зrd Quarter 1st Quarter Quarter 10,000 Budgeted sales (units) 12,000 11,000 8,000