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The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year. Budgeted sales (units) Required: 1-a. Prepare the company's sales budget. Total sales 1st Quarter 8,500 The selling price of the company's product is $25 per unit. Management expects to collect 60% of sales in the quarter in which the sales are made and 35% 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 $85,500. The company expects to start the first quarter with 2,250 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 2,500 units. 1st Quarter Accounts receivable, beginning balance 1st Quarter sales 2nd Quarter sales 3rd Quarter sales 4th Quarter sales Total cash collections Total units needed 2nd Quarter 10,500 1-b. Prepare the schedule of expected cash collections. JESSI CORPORATION Sales Budget 2nd Quarter 3rd Quarter 4th Quarter 3rd Quarter 12,500 JESSI CORPORATION Schedule of Expected Cash Collections $ 1st Quarter 0 $ 4th Quarter 11,500 1st Quarter 2nd Quarter 3rd Quarter 2. Prepare the company's production budget for the upcoming fiscal year. JESSI CORPORATION Production Budget 0 $ Year 4th Quarter 0 $ 2nd Quarter 3rd Quarter 4th Quarter 0 $ Year Year 0

The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year. Budgeted sales (units) Required: 1-a. Prepare the company's sales budget. Total sales 1st Quarter 8,500 The selling price of the company's product is $25 per unit. Management expects to collect 60% of sales in the quarter in which the sales are made and 35% 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 $85,500. The company expects to start the first quarter with 2,250 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 2,500 units. 1st Quarter Accounts receivable, beginning balance 1st Quarter sales 2nd Quarter sales 3rd Quarter sales 4th Quarter sales Total cash collections Total units needed 2nd Quarter 10,500 1-b. Prepare the schedule of expected cash collections. JESSI CORPORATION Sales Budget 2nd Quarter 3rd Quarter 4th Quarter 3rd Quarter 12,500 JESSI CORPORATION Schedule of Expected Cash Collections $ 1st Quarter 0 $ 4th Quarter 11,500 1st Quarter 2nd Quarter 3rd Quarter 2. Prepare the company's production budget for the upcoming fiscal year. JESSI CORPORATION Production Budget 0 $ Year 4th Quarter 0 $ 2nd Quarter 3rd Quarter 4th Quarter 0 $ Year Year 0

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 1E: The sales department of Macro Manufacturing Co. has forecast sales for its single product to be...
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The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year. Budgeted sales (units) 1st Quarter 8,500 Required: 1-a. Prepare the company's sales budget. Total sales The selling price of the company's product is $25 per unit. Management expects to collect 60% of sales in the quarter in which the sales are made and 35% 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 $85,500. The company expects to start the first quarter with 2,250 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 2,500 units. Accounts receivable, beginning balance 1st Quarter sales 2nd Quarter sales 3rd Quarter sales 4th Quarter sales Total cash collections 2nd Quarter 10,500 1-b. Prepare the schedule of expected cash collections. Total units needed JESSI CORPORATION Sales Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 3rd Quarter 12,500 JESSI CORPORATION Schedule of Expected Cash Collections $ 1st Quarter 0 $ 4th Quarter 11,500 1st Quarter 2nd Quarter 3rd Quarter 2. Prepare the company's production budget for the upcoming fiscal year. JESSI CORPORATION Production Budget 0 $ Year 4th Quarter 0 $ 2nd Quarter 3rd Quarter 4th Quarter Year 0 $ Year 0
Transcribed Image Text:The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year. Budgeted sales (units) 1st Quarter 8,500 Required: 1-a. Prepare the company's sales budget. Total sales The selling price of the company's product is $25 per unit. Management expects to collect 60% of sales in the quarter in which the sales are made and 35% 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 $85,500. The company expects to start the first quarter with 2,250 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 2,500 units. Accounts receivable, beginning balance 1st Quarter sales 2nd Quarter sales 3rd Quarter sales 4th Quarter sales Total cash collections 2nd Quarter 10,500 1-b. Prepare the schedule of expected cash collections. Total units needed JESSI CORPORATION Sales Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 3rd Quarter 12,500 JESSI CORPORATION Schedule of Expected Cash Collections $ 1st Quarter 0 $ 4th Quarter 11,500 1st Quarter 2nd Quarter 3rd Quarter 2. Prepare the company's production budget for the upcoming fiscal year. JESSI CORPORATION Production Budget 0 $ Year 4th Quarter 0 $ 2nd Quarter 3rd Quarter 4th Quarter Year 0 $ Year 0
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