The marketing department of Graber Corporation has submitted the following sales forecast for the upcoming fiscal year.
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1st Quarter |
2nd Quarter |
3rd Quarter |
4th Quarter |
| Budgeted unit sales |
18,000 |
17,000 |
16,000 |
17,000 |
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The selling price of the company%u2019s product is $26.00 per unit. Management expects to collect 75% of sales in the quarter in which the sales are made, 20% 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 $64,000.
The company expects to start the first quarter with 1,800 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 10% of the next quarters budgeted sales. The desired ending finished goods inventory for the fourth quarter is 2,000 units.1a.
Compute the companys total sales.
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1st Quarter |
2nd Quarter |
3rd Quarter |
4th Quarter |
Year |
| Total sales |
$ |
$ |
$ |
$ |
$ |
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1b. Complete the schedule of expected cash collections. (Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required.)
Graber Corporation
Schedule of Expected Cash Collections |
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1st Quarter |
2nd Quarter |
3rd Quarter |
4th Quarter |
Year |
| Accounts receivable, beginning balance |
$ |
$ |
$ |
$ |
$ |
| 1st Quarter sales |
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| 2nd Quarter sales |
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| 3rd Quarter sales |
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| 4th Quarter sales |
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| Total cash collections |
$ |
$ |
$ |
$ |
$ |
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2. Prepare the company%u2019s production budget for the upcoming fiscal year. (Input all amounts as positive values. Do not round intermediate calculations.)
Graber Corporation
Production Budget |
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1st Quarter |
2nd Quarter |
3rd Quarter |
4th Quarter |
Year |
| Budgeted unit sales |
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| (Click to select) Add Deduct : (Click to select) Ending inventory Beginning inventory |
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| Total units needed |
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| (Click to select) Add Deduct : (Click to select) Ending inventory Beginning inventory |
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| Required production |
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