Fortin Limited produces and sells a single product, a wearable LED light for runners and cyclists. The analytics group at Fortin Limite has developed the following estimates for unit sales in the upcoming year. Budgeted unit sales First Quarter 25,000 Second Quarter 22,200 Third Quarter Fourth Quarter 20,100 23,000 The light sells for $30 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 $172,000 and will all be collected during the first quarter of the year. Required: 1-a. Prepare the company's sales budget. At the end of the previous quarter there were 2,300 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.

Fortin Limited produces and sells a single product, a wearable LED light for runners and cyclists. The analytics group at Fortin Limite has developed the following estimates for unit sales in the upcoming year. Budgeted unit sales First Quarter 25,000 Second Quarter 22,200 Third Quarter Fourth Quarter 20,100 23,000 The light sells for $30 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 $172,000 and will all be collected during the first quarter of the year. Required: 1-a. Prepare the company's sales budget. At the end of the previous quarter there were 2,300 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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