The marketing department of Graber Corporation has submitted the following sales forecast for the upcoming fiscal year.

	First Quarter	Second Quarter	Third Quarter	Fourth Quarter
Budgeted unit sales	16,500	15,500	14,500	15,500

The selling price of the company’s product is $25.00 per unit. Management expects to collect 80% of sales in the quarter in which the sales are made and 15% 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 $71,000.

The company expects to start the first quarter with 3,700 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 10% of the next quarter’s budgeted sales. The desired ending finished goods inventory for the fourth quarter is 3,900 units.

Required:

1-a.	Compute the company’s total sales.

1-b.	Complete the schedule of expected cash collections.

2.	Prepare the company’s production budget for the upcoming fiscal year.

 

Transcribed Image Text:

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total Sales %24 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total Sales %24