Question

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	12,300	13,300	15,300	14,300

The selling price of the company’s product is $22 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.

Required:

1. Calculate the estimated sales for each quarter of the fiscal year and for the year as a whole.

Answer 1

1. Calculate the estimated sales for each quarter of the fiscal year and for the year as a whole.

.	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Total
Budgeted unit sales	12,300	13,300	15,300	14,300	55200
* Sales price	$22	$22	$22	$22	$22
Sales Revenue	$270600	$292600	$336600	$314600	$1214400

sales for each quarter = Budgeted unit sales in each quarter * Sales price

* Remaininmg informations are not needed for sales budget..

* the additional information is needed for cash collection budget, not for sales budget