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 quarterbudgeted unit sales 11000 12000 14000 13000the selling price of the company’s product is $18.00 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 $70,200.
the company expects to start the first quarter with 1,650 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 1,850 units.
required: 1. calculate the estimated sales for each quarter of the fiscal year and for the year as a whole. (hint: refer to schedule 1 for guidance.)
2. calculate the expected cash collections for each quarter of the fiscal year and for the year as a whole. (hint: refer to schedule 1 for guidance.)
3. calculate the required production in units of finished goods for each quarter of the fiscal year and for the year as a whole. (hint: refer to schedule 2 for guidance.)