The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account):
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1st Quarter
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2nd Quarter
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3rd Quarter
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4th Quarter
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Budgeted unit sales
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12,400
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13,400
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15,400
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14,400
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The selling price of the company's product is $23 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 $73,000.
The company expects to start the first quarter with 2,480 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 2,680 units.
Required:
1- a.Complete the company's sales budget. b. Complete the schedule of expected cash collections.
2- Prepare the company's production budget for the upcoming fiscal year.