EXERCISE $8-14$ Sales and Production Budgets LO$8-2,$ LO$8-3$

The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year $($all sales are on

account$)$:

The selling price of the company's product is $$18\mathrm{.}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:

Calculate the estimated sales for each quarter of the fiscal year and for the year as a whole. $($Hint: Refer to Schedule $1$ for guidance.$)$

Calculate the expected cash collections for each quarter of the fiscal year and for the year as a whole. $($Hint: Refer to $$ Schedule $1$ for

guidance.$)$

Calculate the required production in units of finished goods for each quarter of the fiscal year and for the year as a whole. $($Hint: Refer to

$$ Schedule $2$ for guidance.$)$