Exercise 8-14 (Algo) Sales and Production Budgets [LO8-2, LO8-3] The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are account): 1st Quarter 2nd Quarter 11,100 12,100 3rd Quarter 14,100 4th Quarter 13,100 Budgeted unit sales The selling price of the company's product is $10 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 $70,400 The company expects to start the first quarter with 1,665 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 fom the fourth quarter is 1,865 units 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. his question by entering your answers in the tabs below.
Exercise 8-14 (Algo) Sales and Production Budgets [LO8-2, LO8-3] The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are account): 1st Quarter 2nd Quarter 11,100 12,100 3rd Quarter 14,100 4th Quarter 13,100 Budgeted unit sales The selling price of the company's product is $10 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 $70,400 The company expects to start the first quarter with 1,665 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 fom the fourth quarter is 1,865 units 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. his question by entering your answers in the tabs below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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![Exercise 8-14 (Algo) Sales and Production Budgets [LO8-2, LO8-3]
The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are c
account):
1st Quarter
11,100
2nd Quarter
12,100
3rd Quarter
14,100
4th Quarter
13,100
Budgeted unit sales
The selling price of the company's product is $10 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 $70,400
The company expects to start the first quarter with 1,665 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 1,865 units.
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc802d839-0afb-4719-afa6-58fb2cdadd5b%2Ff1b88cda-f3c6-45a5-ba0a-40a5418f0a46%2F7wlgyi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 8-14 (Algo) Sales and Production Budgets [LO8-2, LO8-3]
The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are c
account):
1st Quarter
11,100
2nd Quarter
12,100
3rd Quarter
14,100
4th Quarter
13,100
Budgeted unit sales
The selling price of the company's product is $10 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 $70,400
The company expects to start the first quarter with 1,665 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 1,865 units.
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.
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