Master Budget Exercises

Master Budget Exercises

Sales and Production Budgets (8-12)

Sales Budget

Jessi Corporation

Sales Budget

For The Year Ended December 31, 2012

Quarters

1

2

3

4

Year

Budgeted Sales in Units

11,000

12,000

14,000

13,000

50,000

Selling Price per Unit

$18.00

$18.00

$18.00

$18.00

$18.00

Total Sales

$198,000

$216,000

$252,000

$234,000

$900,000

Percentage of sales collected in the period of sales

65%

65%

65%

65%

Percentage of sales collected in the period after sales

30%

30%

30%

Uncollectible sales

5%

5%

5%

5%



Schedule of Expected Cash Collections

1

2

3

4

Year

Beginning Balance of Accounts Receivables

$70,200

First Quarter Sales

$128,700

$59,400

Second Quarter Sales

$140,400

$64,800

Third Quarter Sales

$163,800

$75,600

Fourth Quarter Sales

$152,100

Total Cash Collections

$190,900

$199,800

$228,600

$227,700

$847,000

Note:

Total cash in first quarter = beginning balance of account receivables + cash collected in first quarter

Cash collected in first quarter = 65% of $198,000

Cash collected in the second quarter = 30% of $198,000 + 65% of ...