Question
The marketing department of Graber Corporation has submitted the following sales forecast for the upcoming fiscal year. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
The marketing department of Graber Corporation has submitted the following sales forecast for the upcoming fiscal year. |
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |
Budgeted unit sales | 18,000 | 17,000 | 16,000 | 17,000 |
The selling price of the companys product is $24.00 per unit. Management expects to collect 75% of sales in the quarter in which the sales are made, 20% 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 $67,000. |
The company expects to start the first quarter with 2,700 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 15% of the next quarters budgeted sales. The desired ending finished goods inventory for the fourth quarter is 2,900 units. |
Required: |
1a. | Compute the companys total sales. |
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Year | |
Total sales | $ | $ | $ | $ | $ |
1b. | Complete the schedule of expected cash collections.(Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required.) |
Graber Corporation Schedule of Expected Cash Collections | |||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Year | |
Accounts receivable, beginning balance | $ | $ | $ | $ | $ |
1st Quarter sales | |||||
2nd Quarter sales | |||||
3rd Quarter sales | |||||
4th Quarter sales | |||||
Total cash collections | $ | $ | $ | $ | $ |
2. | Prepare the companys production budget for the upcoming fiscal year.(Input all amounts as positive values. Do not round intermediate calculations.) |
Graber Corporation Production Budget | |||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Year | |
Budgeted unit sales | |||||
(Click to select)AddDeduct:(Click to select)Beginning inventoryEnding inventory | |||||
Total units needed | |||||
(Click to select)AddDeduct:(Click to select)Beginning inventoryEnding inventory | |||||
Required production | |||||
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