Accounting Assignment One Ashford University

Assignment Four

Ashford University

Managerial Accounting

BUS 630

Professor Susan Didriksen

April 02, 2012

Assignment Four

This paper will focus on three forecasts from three separate corporations. These corporations include Jessi Corporation, Hareston Company, and Raredon Corporation. Master budgets will be created showing calculations.

Jessi Corporation

Fourth Quarter

The Jessi Corporation’s marketing department submitted a forecast for sales. This forecast focuses on the upcoming fiscal year. All sales involved are on account. The forecast shows as follows:

| First Quarter | Second Quarter | Third Quarter |

Units to be produced | 11,000 | 12,000 | 14,000 | 13,000 |

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.

Based on this information, the following will be prepared: the company’s sales budget and schedule of expected cash collection and the company’s production budget for the upcoming year. This information is shown beginning on page three:

Problem 8-12 | Quarter One | Quarter Two | Quarter Three | Quarter Four |

sales price | $18.00 per unit | 18 per unit | 18 per unit | 18 per unit |

sales forecast, units | 12,000 | 14,000 | 13,000 | 11,000 |

  |   |   |   |   |

collections: |   |   |   |   |

current month | $140,400 | $163,800 | $152,100 | $128,700 |

prior month | 70,200 | 64,800 | 75,600 | 70,200 |...