Sales and production budgeting

Assignment Help Accounting Basics

Reference no: EM13154621

The Marketing department of Jesse Corporation has submitted the following sales forecast from the upcoming fiscal year. (All sales are on account).

Budgeted unit Sales:

1st quarter 11000
2nd quarter 12000
3rd quarter 14000
4th quarter 13000

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 expected to be collected in the 1st quarter is 70000. The company expects to start the 1st quarter with 1650 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 15% of the next quarters budgeted sales. The desired ending finished goods inventory for the 4th quarter is 1850 units.

a) Prepare the companies sales budget and schedule of expected cash collections.

b) Prepare the companies production budget fro the upcoming fiscal year

Reference no: EM13154621

Questions Cloud

What is the future worth of this investment : HoosierMaker expects to garner revenue of $9.5 million each year and spend $1.3 million a year in costs, over the next 7 years. What is the future worth of this investment if the companies' rate of return is 16% per year?

What volume does the gas occupy : A gas occupies a volume of 75 ml when the pressure is 380 mmHg. What volume does the gas occupy at 1140 mmHg

Total annual cost-unit cost of fixed-variable costs : Identify which cost item above is fixed and variable and why. What is the cost per unit of each? Suppose we increased our sales volume to 6000 units and then to 8000 units the following year (and are still within the relevant range), what would be..

What did the fed actually do : Assume the full- unemployment rate is 5% . What could the Fed do in 2002-2003 in order to bring the economy back to full-unemployment ? What did the Fed actually do? Explain in detail

Sales and production budgeting : a) Prepare the companies sales budget and schedule of expected cash collections. b) Prepare the companies production budget fro the upcoming fiscal year

Explain volume increases isothermally : Volume increases isothermally? Two pure gas species are mixed at constant temperature? Temperature increases isobarically? Pressure increases isothermally?

Determining individual federal income tax return : Brown earned net operating income of $80,000 and had a long-term capital loss of $3,000. Also, Jay withdrew $40,000 from the corporation. Jay must report $80,000 of Brown Corporation income and may deduct the $3,000 loss on his individual Federal ..

Prepare report for customer that presents expected value : Prepare a report for the customer that presents the expected value in points of each throw of the darts, and then present a graphic representation.

Explain partial pressure of ammonia has increase : When equilibrium is established, it is found that the partial pressure of ammonia has increase by 12.4%. Calculate K for the decomposition of NH4HS at 25 degrees C.

User Account

All Pages