The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year: 1st 2nd 3rd 4th Quarter 9,600 Quarter Quarter 13,600 Quarter Budgeted sales (units) 11,600 12,600 The selling price of the company's product is $36 per unit. Management expects to collect 55% of sales in the quarter in which the sales are made and 40% in the following quarter; 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which are expected to be collected in the first quarter, is $96,500. The company expects to start the first quarter with 2,800 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 3,050 units. Required: 1-a. Prepare the company's sales budget. JESSI CORPORATION Sales Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total sales

The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year: 1st 2nd 3rd 4th Quarter 9,600 Quarter Quarter 13,600 Quarter Budgeted sales (units) 11,600 12,600 The selling price of the company's product is $36 per unit. Management expects to collect 55% of sales in the quarter in which the sales are made and 40% in the following quarter; 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which are expected to be collected in the first quarter, is $96,500. The company expects to start the first quarter with 2,800 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 3,050 units. Required: 1-a. Prepare the company's sales budget. JESSI CORPORATION Sales Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total sales

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 16E

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