Master Budget Exercises

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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...