Exercise 8-14 PDF

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Exerc Exercise ise 8-14 (30 minutes) 1. Jessi Corporation Sales Budget

4th Quarter 13,000 × $18.00 $234,000

Year 50,000 × $18.00 $900,000

Beginning accounts receivable $ 70,200 1st Quarter sales 128,700 $ 59,400 nd 2 Quarter sales 140,400 $ 64,800 rd 3 Quarter sales 163,800 $ 75,600 th 4 Quarter sales 152,100 Total cash collections $198,900 $199,800 $228,600 $227,700

$ 70,200 188,100 205,200 239,400 152,100 $855,000

Budgeted unit sales Selling price per unit Total sales

1st 2nd 3rd Quarter Quarter Quarter 11,000 12,000 14,000 × $18.00 × $18.00 × $18.00 $198,000 $216,000 $252,000

Schedule of Expected Cash Collections

Exerc Exercise ise 8-14 (continued) 2. Jessi Corporation Production Budget

Budgeted unit sales Add desired units of ending finished goods inventory Total needs Less units of beginning finished goods inventory Required production in units

1st Quarter 11,000

2nd Quarter 12,000

3rd Quarter 14,000

4th Quarter 13,000

Year 50,000

1,800 12,800

2,100 14,100

1,950 15,950

1,850 14,850

1,850 51,850

1,650 11,150

1,800 12,300

2,100 13,850

1,950 12,900

1,650 50,200...