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

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
Budgeted unit sales	12,800	13,800	15,800	14,800

The selling price of the companys product is $27 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 $73,800.

The company expects to start the first quarter with 2,560 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarters budgeted sales. The desired ending finished goods inventory for the fourth quarter is 2,760 units.

1-b.

Complete the schedule of expected cash collections.

Jessi Corporation
Schedule of Expected Cash Collections
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Beginning accounts receivable	$73,800				$73,800
1st Quarter sales	224,640	103,680			328,320
2nd Quarter sales		242,190	111,780		353,970
3rd Quarter sales			277,290	127,980	405,270
4th Quarter sales				259,740	259,740
Total cash collections	$298,440	$345,870	$389,070	$387,720	1,421,100

2.

Prepare the companys production budget for the upcoming fiscal year.

Jessi Corporation
Production Budget
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Budgeted unit sales	12,800	13,800	15,800	14,800	57,200
Add: Desired units of ending finished goods inventory
Total needs	12,800	13,800	15,800	14,800	57,200
Less: Units of beginning finished goods inventory	2,560	2,760	3,160	2,960
Required production in units	10,240	11,040	12,640	11,840	57,200