Exercise 7-14 Sales and Production Budgets [LO7-2, L07-3] The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account): Budgeted unit sales st uarter 2nd Quarter 3rd Quarter 4th Quarter 11,000 12,000 14,000 13,000 The selling price of the company's product is $18.00 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 $70,200 The company expects to start the first quarter with 1.650 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 1,850 units Required 1-a. Complete the company's sales budget Jessi Corporation Sales Budget 2nd Quarter 1st Quarter 3rd Quarter 4th Quarter Year Budgeted units sales Selling price per unit Total sales 2. Prepare the company's production budget for the upcoming fiscal year. Jessi Corporation Production Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Budgeted unit sales Add: Desired units of ending finished goods inventory Add: Units of beginning finished goods inventory Less: Desired units of ending finished goods inventory Less: Units of beginning finished goods inventory 2. Prepare the company's production budget for the upcoming fiscal year Jessi Corporation Production Budget 1st Quarter 2nd Quarter 3rd Quarter 4th QuarterYear Budgeted unit sales Total needs Required production in units