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 11,900 12,900 3rd Quarter 4th Quarter 14,900 13,900 Budgeted unit sales The selling price of the company's product is $18 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 $72,000. The company expects to start the first quarter with 1,785 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 1,985 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.
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.
![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
11,900
12,900
Budgeted unit sales.
The selling price of the company's product is $18 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 $72,000.
The company expects to start the first quarter with 1,785 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 1,985 units.
Required 1 Required 2
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.
3rd Quarter 4th Quarter
14,900
13,900
Total sales
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
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![1. Calculate the estimated sales for ea
quarter of the fiscal
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 v
3. Calculate the required production in units of finished goods for each quarter of the fiscal year and
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Required 3
Calculate the expected cash collections for each quarter of the fiscal year and for the year as a whole.
3rd Quarter
Total cash collections
1st Quarter 2nd Quarter
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