4 The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal…
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Question “4 The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal…”
4 The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account) 1st Quarter 12,900 2nd Quarter 13,900 3rd Quarter 15,900 4th Quarter 14,900 Budgeted unit sales points Skipped The selling price of the company’s product is $28 per unit. Management expects to collect 75 % of sales in the quarter in which the sales are made, 20 % 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 $74,000. eBook The company expects to start the first quarter with 2,580 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 2,780 units Print References Required: 1 Calculate the estimated sales for each quarter of the fiscal year and for the year as a whole. 2. Calculate the expected cash collections for each quarter of the fiscal year and for the year as a whole. 3. Calculate the required production in units of finished goods for each quarter of the fiscal year and for the year as a whole Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the estimated sales for each quarter of the fiscal year and for the year as a whole. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total sales
Answer
Sales of budgeted units Selling price Budgeted sale 1. Estimated sales 1st quarter 2nd quarter 3rd quarter 4th year 13,900 14,900 57.600 $ 28 $28 $ 28 $28 $ 28 $ $ 28$ 28 $389,200 $445,200 $5417,200 $6 1,612,800 (Sales * 75%) & (Sales * 20%) 445,200 333,900 $ 89,040 $ 422,940 (Sales * 75% & Sales * 25%) 445,200 417,200 4th Quarter sales,311,740 $ 412,900 $ 312,900 $ 31,2900 $ 312,900 $ 346,080 $ 411,740 $ 411,740 $ 401,94080 $ 411,740 $ 401,94080 $ 401,94080 $ 401,94080 $ 411,740 $ 349,90 $ 389,900 $ 555,900 $ 77,900 $ 4171,900 $ 83,040 $ 662,900 $ 777 111,900 $ 912,900 $ 375 $ 510,900 $ 151,900 $ 450 $ sales *75544,740 $ sales *756) Expected cash collections Sales 1st Quarter 2nd Quarter 3rd Quarter | 4th Quarter Year $ 74,000 $ 74,000 361,200 $ 270,900 $ 54,180 $ 325,080 (Sales * 75%) & (Sales * 20%) 389,200 $ 291,900 $ 77,840 $ 369,740 (Sales * 75%) & (Sales * 20%) 445,200 $ 333,900 $ 89,040$ 422,940 (Sales * 75%) & (Sales * 20%) 417,200 $ 312,900 $ 312,900 (Sales * 75%) $ 344,900 $ 346,080 $ 411,740 $ 401,940 $ 1,504,660 Budgeted unit sales Add: Desired ending inventory Total needs Less: Beginning inventory Production Budget (units) 3. Production Budget 1st Quarter 2nd Quart 3rd Quarter 4th Year 12,900 13,900 14,900 $ 54,180 $ 325,080 (Sales * 75%) & (Sales * 20%) 389,200 $ 291,900 $ 345,080 $ 411,740 ($ 401,940).
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