Submitted by: Submitted by greentrameika
Views: 1291
Words: 1190
Pages: 5
Category: Business and Industry
Date Submitted: 09/06/2011 03:27 PM
Master Budget Exercises (Assignment 4)
Trameika Green
Managerial Accounting: BUS 630
Prof: Isabel Wan
August 29, 2011
Sales and Production Budgets (8-12): 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 Quarter |
|Units to be produced |12,000 |14,000 |13,000 |11,000 |
| | | | | | |
The 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.
1. Prepare the company's sales budget and schedule of expected cash collections.
| Jessi Corporation |
| Sales Budget |
| for the year Ending December 31, 2011 |
|Units to be |1st Quarter |2nd Quarter |3rd Quarter...