Chapter 8 homework I put two question because The first one someone put the answ
ID: 2474104 • Letter: C
Question
Chapter 8 homework
I put two question because The first one someone put the answers in chegg, but I couldn't understand the order. If you can help me with this two problems thank you.
The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account):
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Budgeted unit sales
12,600
13,600
15,600
14,600
The selling price of the company’s product is $25 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 $73,400.
The company expects to start the first quarter with 2,520 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 2,720 units.
Required:
1-a.
Compute the company’s total sales.
1-b.
Complete the schedule of expected cash collections. (table above)
2.
Prepare the company’s production budget for the upcoming fiscal year.
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Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company’s products. The company is now planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements:
a.
The finished goods inventory on hand at the end of each month must be equal to 2,000 units of Supermix plus 20% of the next month’s sales. The finished goods inventory on June 30 is budgeted to be 13,000 units.
b.
The raw materials inventory on hand at the end of each month must be equal to one-half of the following month’s production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 74,000 cc of solvent H300.
c.
The company maintains no work in process inventories.
A sales budget for Supermix for the last six months of the year follows.
Budgeted Sales
in Units
July
55,000
August
60,000
September
70,000
October
50,000
November
40,000
December
30,000
Required:
1.
Prepare a production budget for Supermix for the months July, August, September, and October.
3.
Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total. (table above)
The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account):
Required 1-a. Compute the company's total sales Jessi Corporation Sales Budget Year 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 14,600 25 $ 315,000 340,000 390,000 365,000 12,600 Budgeted units sales Selling price per unit S Total sales 13,600 15,600 25 S 25 $ 25 $ 1-b. Complete the schedule of expected cash collections Jessi Corporation Schedule of Expected Cash Collections 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year $ 73,400 $ 73,400 Beginning accounts receivable 1st Quarter sales 2nd Quarter sales 3rd Quarter sales 4th Quarter sales Total cash collections 0 0 0 73,400 $ 73,400 0Explanation / Answer
Answer:1
Answer:2
1
3.
Jessi Corporation Sales Budget Particulars 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Budgeted unit sales 12600 13600 15600 14600 56400 Selling price per unit 25 25 25 25 25 Total sales 315000 340000 390000 365000 1410000 Jessi Corporation Schedule of expected cash collections Particulars 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Beg. Accounts receivable 73400 73400 1st Quarter sales 204750 94500 299250 2nd Quarter sales 221000 102000 323000 3rd Quarter sales 253500 117000 370500 4th Quarter Sales 237250 237250 Total cash collections 278150 315500 355500 354250 1303400 Jessi Corporation Production budget Particulars 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Budgeted unit sales 12600 13600 15600 14600 56400 Add: ending inventory 2720 3120 2920 2720 11480 Total needs 15320 16720 18520 17320 67880 Less: beginning inventory 2520 2720 3120 2920 11280 Required production in units 12800 14000 15400 14400 56600