The marketing department of Jessi Corporation submitted the following sales forecast for next year (all sales are on account): 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 12,900 13,900 15,900 14,900 Budgeted unit sales. The selling price of the company's product is $28 per unit. Management expects to collect 75% of sales in the quarter in which the sales are made and 20% in the following quarter; 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 $74,000. The company expects to start the first quarter with 2,580 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 2,780 units. Required: 1. Calculate the estimated sales for each quarter and for the year as a whole. 2. Calculate the expected cash collections for each quarter and for the year as a whole. 3. Calculate the required production in units of finished goods for each quarter 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 and for the year as a whole. 2nd Quarter 38,920,000 Total sales X Answer is complete but not entirely correct. 1st Quarter $ 361,200,000 $ 3rd Quarter $ 445,200,000 < Required 1 4th Quarter $ 417,200,000 $ Year 1,612,800,000 Required 2 >
The marketing department of Jessi Corporation submitted the following sales forecast for next year (all sales are on account): 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 12,900 13,900 15,900 14,900 Budgeted unit sales. The selling price of the company's product is $28 per unit. Management expects to collect 75% of sales in the quarter in which the sales are made and 20% in the following quarter; 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 $74,000. The company expects to start the first quarter with 2,580 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 2,780 units. Required: 1. Calculate the estimated sales for each quarter and for the year as a whole. 2. Calculate the expected cash collections for each quarter and for the year as a whole. 3. Calculate the required production in units of finished goods for each quarter 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 and for the year as a whole. 2nd Quarter 38,920,000 Total sales X Answer is complete but not entirely correct. 1st Quarter $ 361,200,000 $ 3rd Quarter $ 445,200,000 < Required 1 4th Quarter $ 417,200,000 $ Year 1,612,800,000 Required 2 >
Chapter15: Managing Short-term Assets
Section: Chapter Questions
Problem 1PROB
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text:The marketing department of Jessi Corporation submitted the following sales forecast for next year (all sales are on account):
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
12,900
13,900
15,900
14,900
Budgeted unit sales
The selling price of the company's product is $28 per unit. Management expects to collect 75% of sales in the quarter in which
the sales are made and 20% in the following quarter; 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 $74,000.
The company expects to start the first quarter with 2,580 units in finished goods inventory. Management desires an ending
finished goods inventory in each quarter equal to 20% of the next quarter's budgeted sales. The desired ending finished goods
inventory for the fourth quarter is 2,780 units.
Required:
1. alculate the estimated sales for each quarter and for the year as a whole.
2. Calculate the expected cash collections for each quarter and for the year as a whole.
3. Calculate the required production in units of finished goods for each quarter and for the year as a whole.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Total sales
Required 3
Calculate the estimated sales for each quarter and for the year as a whole.
2nd
Quarter
> Answer is complete but not entirely correct.
1st Quarter
$
361,200,000
$
38,920,000
3rd Quarter
$
445,200,000
< Required 1
4th Quarter
$
417,200,000
$
Year
1,612,800,000
Required 2 >
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