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EXERCISE 8-14 Sales and Production Budgets L08-29, L08-30 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 11,000 12,000 14,000 13,000 Budgeted unit sales 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. 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 2. 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.) 3. 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.)