Only need help with requirement 3. Thanks! The marketing department of Jessi Corporation has submitted...
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Only need help with requirement 3. Thanks!
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
11,200
12,200
14,200
13,200
The selling price of the companys product is $11 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 $70,600.
The company expects to start the first quarter with 1,680 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 15% of the next quarters budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,880 units.
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 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
11,350
Answer & Explanation
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