4 Fortin Limited produces and sells a single product, a wearable LED light for runners and cyclists. The analytics group at Fortin Limited has developed the following estimates for unit sales in the upcoming year Budgeted unit sales First Quarter The light sells for $60 per unit and all sales are on account. 75% of sales are expected to be collected in the quarter of sale, with the remainder in the following quarter Accounts receivable at the beginning of the quarter were $165,000 and will all be collected during the first quarter of the year Required: 1-a. Prepare the company's sales budget. Budgeted unit sales Seting price per un Total Sales Second Quarter 22,200 At the end of the previous quarter there were 2.200 units in finished goods inventory. The desired ending finished goods inventory at the end of each quarter is 10% of the next quarter's budgeted sales Management expects sales in the fourth quarter of the upcoming year to be the same as the first quarter of the following year First Quarter Third Fourth Quarter Quarter 20,300 21,600 Second Quarter Third Quarter $ Fourth Quarter Year

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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4
1-b. Prepare the schedule of expected cash collections.
Accounts receivable, beginning balance
1st Quarter sales
2nd Quarter sales
3rd Quarter sales
4th Quarter sales
Total cash collections
Budgeted unt sales
Total units needed.
FORTIN LIMITED
Schedule of Expected Cash Collections
First
Quarter
Required production
$
165,000
2. Prepare the company's production budget for the upcoming fiscal year
First
Quarter
165,000 $
0
Second
Quarter
FORTIN LIMITED
Production Budget
0
Second
Quarter
0
05
0
Third
Quarter
Third
Quarter
0
0
0 $
Fourth
Quarter
Fourth
Quarter
0
0
S 165,000
0
0
0
0$
Year
Year
165,000
0
0
10
Transcribed Image Text:4 1-b. Prepare the schedule of expected cash collections. Accounts receivable, beginning balance 1st Quarter sales 2nd Quarter sales 3rd Quarter sales 4th Quarter sales Total cash collections Budgeted unt sales Total units needed. FORTIN LIMITED Schedule of Expected Cash Collections First Quarter Required production $ 165,000 2. Prepare the company's production budget for the upcoming fiscal year First Quarter 165,000 $ 0 Second Quarter FORTIN LIMITED Production Budget 0 Second Quarter 0 05 0 Third Quarter Third Quarter 0 0 0 $ Fourth Quarter Fourth Quarter 0 0 S 165,000 0 0 0 0$ Year Year 165,000 0 0 10
4
Fortin Limited produces and sells a single product, a wearable LED light for runners and cyclists. The analytics group at Fortin Limited
has developed the following estimates for unit sales in the upcoming year
Budgeted init sales
First
Quarter
25,600
The light sells for $60 per unit and all sales are on account. 75% of sales are expected to be collected in the quarter of sale, with the
remainder in the following quarter Accounts receivable at the beginning of the quarter were $165,000 and will all be collected during
the first quarter of the year.
Required:
1-8. Prepare the company's sales budget.
Budgeted unit sales
Seling price per unit
Total Sales
At the end of the previous quarter there were 2.200 units in finished goods inventory. The desired ending finished goods inventory at
the end of each quarter is 10% of the next quarter's budgeted sales. Management expects sales in the fourth quarter of the upcoming
year to be the same as the first quarter of the following year
$
Second Third
Quarter Quarter
22,200 20,300
First
Quarter
Fourth
Quarter
21,600
Second
Quarter
Third
Quarter
Fourth
Quarter
Year
Transcribed Image Text:4 Fortin Limited produces and sells a single product, a wearable LED light for runners and cyclists. The analytics group at Fortin Limited has developed the following estimates for unit sales in the upcoming year Budgeted init sales First Quarter 25,600 The light sells for $60 per unit and all sales are on account. 75% of sales are expected to be collected in the quarter of sale, with the remainder in the following quarter Accounts receivable at the beginning of the quarter were $165,000 and will all be collected during the first quarter of the year. Required: 1-8. Prepare the company's sales budget. Budgeted unit sales Seling price per unit Total Sales At the end of the previous quarter there were 2.200 units in finished goods inventory. The desired ending finished goods inventory at the end of each quarter is 10% of the next quarter's budgeted sales. Management expects sales in the fourth quarter of the upcoming year to be the same as the first quarter of the following year $ Second Third Quarter Quarter 22,200 20,300 First Quarter Fourth Quarter 21,600 Second Quarter Third Quarter Fourth Quarter Year
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