• 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	12,200	13,200	15,200	14,200

  The selling price of the company’s product is $21 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 $72,600.

  The company expects to start the first quarter with 2,440 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 2,640 units.

  Required

  1-A. Complete the company's sales budget.

  Jessi Corporation - Sales Budget

  	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
  Budgeted Units Sales
  Selling Price Per Unit
  Total Sales

  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 Accts Receivable
  1st Quarter Sales
  2nd Quarter Sales
  3rd Quarter Sales
  4th Quarter Sales
  Total Cash Collections

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

  Jessi Corporation - Production Budget

  	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
  Budgeted Unit Sales
  Total Needs
  Required Production in Units