The marketing department of Graber Corporation has submitted the following sales forecast for the upcoming fiscal year.

Budgeted unit sales First Quarter Second Quarter Third Quarter Fourth Quarter

16,100 15,100 14,100 15,100

The selling price of the company's product is $23.00 per unit. Management expects to collect 70% of sales in the quarter in which the sales are made and 20% in the following quarter, and 10% 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 3,300 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 3,500 units.

Required:

1-a.Compute the company's total sales.

first quarter second quarter third quarter fourth quarter year

Total sales .......... .............. ............... ............ $.....

1-b.Complete the schedule of expected cash collections.

schedule of expected cash collections

1st quarter 2nd quarter 3rd quarter 4th quarter year ($)

Accounts receiveble,beginning balance ........... ............... ............... .............. .............

1st quarter sales ........... ............... ............... .............. .............

2nd quarter sales ........... ............... ............... .............. .............

3rd quarter sales ........... ............... ............... .............. .............

fourth quarter sales ........... ............... ............... .............. .............

total cash collections ........... ............... ............... .............. .............

2.Prepare the company's production budget for the upcoming fiscal year.

production budget

1st quarter 2nd quarter 3rd quarter 4th quarter year ($)

Budgeted unit sales ........... ............... ............... .............. .............

........... ............... ............... .............. .............

Total unit sales ........... ............... ............... .............. .............

........... ............... ............... .............. .............

required production ........... ............... ............... .............. .............