The marketing department of Jessi Corporation has submitted the following sales forecast tor the upcoming fiscal year (all sales are on account):

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.

Required:

1.         Prepare the company’s sales budget and schedule of expected cash collections.

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

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1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 12,000 Budgeted units sales 13,000 11,000 14,000