Sales and Production Budgets L08—2, L08—3 The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account): The selling price of the company’s product is S 18.00 per unit. Management expects to collect 65% of sales in the quarter in which the sales are made, 30% in the following quarter, and 50% 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 $70,200. The company expects to start the first quarter with 1.650 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 1,850 units. Required: 1. Calculate the estimated sales for each quarter of the fiscal year and for the year as a whole. (Hints Refer to Schedule 1 for guidance.) 2. Calculate the expected cash collections for each quarter of the fiscal year and for the year as a whole. (Hint: Refer to Schedule 1 for guidance.) 3. Calculate the required production in units of finished goods for each quarter of the fiscal year and for the year as a whole. (Hint: Refer to Schedule 2 for guidance.)
Sales and Production Budgets L08—2, L08—3 The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account): The selling price of the company’s product is S 18.00 per unit. Management expects to collect 65% of sales in the quarter in which the sales are made, 30% in the following quarter, and 50% 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 $70,200. The company expects to start the first quarter with 1.650 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 1,850 units. Required: 1. Calculate the estimated sales for each quarter of the fiscal year and for the year as a whole. (Hints Refer to Schedule 1 for guidance.) 2. Calculate the expected cash collections for each quarter of the fiscal year and for the year as a whole. (Hint: Refer to Schedule 1 for guidance.) 3. Calculate the required production in units of finished goods for each quarter of the fiscal year and for the year as a whole. (Hint: Refer to Schedule 2 for guidance.)
Solution Summary: The author explains that budget is the evaluation of the revenue and the expense which is expected incur in the specified period.
Sales and Production Budgets L08—2, L08—3 The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account):
The selling price of the company’s product is S 18.00 per unit. Management expects to collect 65% of sales in the quarter in which the sales are made, 30% in the following quarter, and 50% 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 $70,200. The company expects to start the first quarter with 1.650 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 1,850 units. Required: 1. Calculate the estimated sales for each quarter of the fiscal year and for the year as a whole. (Hints Refer to Schedule 1 for guidance.) 2. Calculate the expected cash collections for each quarter of the fiscal year and for the year as a whole. (Hint: Refer to Schedule 1 for guidance.) 3. Calculate the required production in units of finished goods for each quarter of the fiscal year and for the year as a whole. (Hint: Refer to Schedule 2 for guidance.)
Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.
Yami Enterprises began the accounting period with $75,000 of merchandise, and the net cost of purchases was $265,000. A physical inventory showed $85,000 of merchandise unsold at the end of the period. The cost of goods sold by York Enterprises for the period is ____. Answer
Yami Enterprises began the accounting period with $75,000 of merchandise, and the net cost of purchases was $265,000. A physical inventory showed $85,000 of merchandise unsold at the end of the period. The cost of goods sold by York Enterprises for the period is ____.
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