Chapter 8 The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account):

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
Budgeted unit sales	12,400	13,400	15,400	14,400

The selling price of the companys 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 quarters budgeted sales. The desired ending finished goods inventory for the fourth quarter is 2,680 units.

Required:

1-a.	Compute the companys total sales.

Jessi Corporation
Sales Budget
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Budgeted units sales
Selling price per unit
Total sales

1-b.	Complete the schedule of expected cash collections.

Jessi Corporation
Schedule of Expected Cash Collections
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Beginning accounts receivable
1st Quarter sales
2nd Quarter sales
3rd Quarter sales
4th Quarter sales
Total cash collections

2.	Prepare the companys production budget for the upcoming fiscal year.

Jessi Corporation
Production Budget
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Budgeted unit sales
Total needs
Required production in units