70.2K

Verified Solution

Link Copied!

Exercise 8-14 (Algo) 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: Budgeted unit sales It Quarter 2nd Quarterd Quarter Quarter 11.100 12100 14,100 13,100 The selling price of the company's product is $10 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 $70.400. The company expects to start the first quarter with 1,665 units in finished goods inventory Management desires on 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 1,865 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the estimated sales for each quarter of the fiscal year and for the year as a whole. Year 1st Quarter 2nd Quarter Srd Quarter 4th Quarter Proy of 4 Next > The selling price of the company's product is $10 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 $70,400. The company expects to start the first quarter with 1,665 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 1,865 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, Complete this question by entering your answers in the tabs below, Required 1 Required 2 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 Year Total sales Required 2 > Tilst quarter with 1,665 units in finished goods inventory. Manage finished goods inventory in each quarter equal to 15% of the next quarter's budgeted sales. The de inventory for the fourth quarter is 1,865 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 3. Calculate the required production in units of finished goods for each quarter of the fiscal year ar 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. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total cash collections The selling price of the company's product is $10 per unit. Management expects to collect 75% of sales int the sales are made, 20% in the following quarter, and 5% of sales are expected to be uncollectible. The bes accounts receivable, all of which is expected to be collected in the first quarter, is $70,400. The company expects to start the first quarter with 1,665 units in finished goods inventory. Management de finished goods inventory in each quarter equal to 15% of the next quarter's budgeted sales. The desired en inventory for the fourth quarter is 1,865 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the required production in units of finished goods for each quarter of the fiscal year and for the year as 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Required production in units

Answer & Explanation Solved by verified expert

See Answer