Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the marketing department of jessi corporation has

The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal...

90.2K

Verified Solution

Question

Accounting

The marketing department of Jessi Corporation has submittedthe following sales forecast for the upcoming fiscal year (allsales are on account):

Units to be produced

1st Quarter: 12600
2nd Quarter: 13600
3rd Quarter: 15600
4th Quarter: 14600

The selling price of the company's product is $25.00 per unit.Management expects to collect 65% of sales in the quarter in whichthe sales are made, 30% in the following quarter, and 5% of salesare expected to be "'uncollectible. The beginning balance ofaccounts receivable, all of which is expected to be collected inthe first quarter, is $73,400.

The company expects to start the first quarter with 2520 unitsin finished goods inventory. Management desires an ending finishedgoods inventory in each quarter equal to 20% of the next quarter'sbudgeted sales. The desired ending finished goods inventory for thefourth quarter is 2720 units.

1. Calculate the estimated sales for each quarter of thefiscal year and for the year as a whole.

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

3. Calculate the required production in units of finishedgoods for each quarter of the fiscal year and for the year as awhole.

Answer & Explanation Solved by verified expert
3.7 Ratings (290 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Your boss, the chief financial officer (CFO) for Southern Textiles, has just handed you the estimated...

Basic Math
1.2K views

[x^4e^-x] from 0 to infinity

Physics
1.2K views

There is a hole of area A at the bottom of cylindrical vessel Water is...

Basic Math
1.2K views

Lillian is going to invest in an account paying an interest rate of 5.7% compounded...

Algebra
1.2K views

State the open intervals over which the function is a increasing b decreasing and c...

Accounting
1.2K views

Reliable Manufacturer, Inc. is a calendar year, accrual method C corporation that is in the...

Accounting
1.2K views

The manufacturing overhead budget at Rost Corporation is based on budgeted direct labor-hours. The direct...

Accounting
1.2K views

Dora Company declared and distributed a 15% stock dividend on 14,000 shares of issued and...

Accounting
1.2K views

, 1000 ...

Accounting
1.2K views

Mohave Corporation makes several varletles of beach umbrellas and accessones. It has been approached by...

Finance
1.2K views

At some point within five to ten years, algorithms and machines will be prevalent in...

Finance
1.2K views

The most recent financial statements for Live Co. are shown here: ...