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 3rd Quarter 4th Quarter Budgeted unit sales 11,300 12,300 14,300 13,300     The selling price of the company’s product is $12 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 $70,800.   The company expects to start the first quarter with 1,695 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 1,895 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.   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           Calculate the expected cash collections for each quarter of the fiscal year and for the year as a whole.           1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total cash collections           Calculate the required production in units of finished goods for each quarter of the fiscal year and for the year as a whole.           1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Required production in units

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 3rd Quarter 4th Quarter
Budgeted unit sales 11,300 12,300 14,300 13,300
 

 

The selling price of the company’s product is $12 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 $70,800.

 

The company expects to start the first quarter with 1,695 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 1,895 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.

 

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        

 

Calculate the expected cash collections for each quarter of the fiscal year and for the year as a whole.

 
 
 
 
  1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year
Total cash collections        

 

Calculate the required production in units of finished goods for each quarter of the fiscal year and for the year as a whole.

 
 
 
 
  1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year
Required production in units        

 

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