Chapter $9$ Connect Homework, part $1$

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$1$ Exercise $9-2$ Sales and Production Budget $[$LO$2]$

Fortin Limited produces and sells a single product, a wearable LED light for runners and cyclists. The analytics group at Fortin Limited has developed the following estimates for unit sales in the upcoming year.

$\backslash$table$[[,$First,Second,Third,Fourth$],[,$Quarter,Quarter,Quarter,Quarter$],[$Budgeted unit sales,$24,500,22,000,20,400,22,900]]$

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The light sells for $$50$ per unit and all sales are on account. $75\%$ of sales are expected to be collected in the quarter of sale, with the remainder in the following quarter. Accounts receivable at the beginning of the quarter were $$171,000$ and will all be collected during the first quarter of the year.

At the end of the previous quarter there were $2,800$ units in finished goods inventory. The desired ending finished goods inventory at the end of each quarter is $10\%$ of the next quarter's budgeted sales. Management expects sales in the fourth quarter of the upcoming year to be the same as the first quarter of the following year.

Required:

$1-$a$.$ Prepare the company's sales budget.