The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account) 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter Budgeted unit sales 11,000 12,000 14,000 13,000 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 Requirement 1 Prepare the company's sales budget (Omit the $ sign in your response ) 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter Year Total sales $ $ $ $ $ Prepare the schedule of expected cash collections (Leave no cells blank be certain to enter 0 wherever required Omit the $ sign in your response ) Jessi Corporation Schedule of Expected Cash Collections 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter Year Accounts receivable, beginning balance $ $ $ $ $ 1 st Quarter sales 2 nd Quarter sales 3 rd Quarter sales 4 th Quarter sales Total cash collections $ $ $ $ $ Requirement 2 Prepare the company's production budget for the upcoming fiscal year (Input all amounts as positive values ) Jessi Corporation Production Budget 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter Year Budgeted unit sales Add desired ending inventory Total units needed Less beginning inventory Required production I am having trouble getting the proper numbers and it is probably due to the method i was told to use so could someone please show me how this is done

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 29, 2024

The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account): 1 st Quarter

The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account):

	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Budgeted unit sales	11,000	12,000	14,000	13,000

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.

Requirement 1:
	Prepare the company's sales budget. (Omit the "$" sign in your response.)

	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter	Year
Total sales	$	$	$	$	$

Prepare the schedule of expected cash collections. (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

Jessi Corporation Schedule of Expected Cash Collections
	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter	Year
Accounts receivable, beginning balance	$	$	$	$	$
1^st Quarter sales
2^nd Quarter sales
3^rd Quarter sales
4^th Quarter sales
Total cash collections	$	$	$	$	$

Requirement 2:

Prepare the company's production budget for the upcoming fiscal year. (Input all amounts as positive values.)

Jessi Corporation Production Budget
	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter	Year
Budgeted unit sales
Add desired ending inventory
Total units needed
Less beginning inventory
Required production

I am having trouble getting the proper numbers and it is probably due to the method i was told to use so could someone please show me how this is done?