The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year:

1st Quarter2nd Quarter3rd Quarter4th QuarterBudgeted sales (units)8,40010,40012,40011,400

The selling price of the company's product is $24 per unit. Management expects to collect 55% of sales in the quarter in which the sales are made and 40% in the following quarter; 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which are expected to be collected in the first quarter, is $84,500.

The company expects to start the first quarter with 2,200 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 2,450 units.

Required:

1-a.Prepare the company's sales budget.

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

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