Exercise 7-14 Sales and Production Budgets [LO7-2, LO7-3] 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 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. 1st Quarter Year Jessi Corporation Sales Budget 2nd Quarter 3rd Quarter 12,000 14,000 $ 18 $ 18 $ 216,000 $ 252,000 4th Quarter 13,000 11.000 50,000 Budgeted units sales Selling price per unit Total sales 18 $ $ $ 18 234.000 $ $ 18 900,000 198,000 $ 1-b. Complete the schedule of expected cash collections. Jossi Corporation Schedule of Expected Cash Collections 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year $ 0 0 0 Beginning accounts receivable 1st Quarter sales 2nd Quarter sales 3rd Quarter sales 4th Quarter sales Total cash collections 0 OO $ 0 $ 0 $ 0 $ 0 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 Total needs 0 0 0 0 0 Required production in units