The Canadian Adventure Company manufactures camping equipment and is based in Vancouver, BC. Their camper division manufactures a small tent trailer called the Whistler model. For the December 31, 2021 fiscal year, the Vice President of Marketing has submitted the following sales forecast.

Q1Q2Q3Q4

Budgeted sales (in units) 6,700 8,575 4,250 5,890

The selling price of the Whistler model is $5,698 per unit.

Collections on sales tend to follow this schedule: 70% of sales are collected in the same quarter the sale occurs; 27% of sales are collected in the next quarter following the sale; and 3% of sales are deemed uncollectible and must be written off.

Opening accounts receivable is $87,XXX and are expected to be collected in the first quarter.

The Vice President of Production is expecting to start the fiscal year with 2,957 units in finished goods inventory. The Production department has set a target to have 30% of the next quarter's budgeted sales in ending finished goods inventory. The budgeted sales for Q1 in fiscal 2022 are 7,680 units.

REQUIRED:

a)Prepare a sales budget and schedule of expected cash collections for the Canadian Adventure Company.(15 marks)

b)Prepare a production budget for the December 31, 2021 fiscal year.(10 marks)

NOTE: For any numbers ending in XXX, use the last THREE (3) digits of your Student ID. For example, if your Student ID is T00608244, you would change the last three numbers to 456.

NOTE re. ROUNDING: You can round your calculations down to ZERO (ie. NO) decimal places.