complete the following three exercises and submit to your instructor. Be sure to show your work for calculations to earn full credit.
Sales and Production Budgets (8-12): 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
- Units to be produced
- 11,000
- 12,000
- 14,000
- 13,000
The selling price of the company's product is $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 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 $70,200.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.
- Prepare the company's sales budget and schedule of expected cash collections.
- Prepare the company's production budget for the upcoming fiscal year.