Master Budget Exercise

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Master Budget Exercises
Violet A. May Bus. 630-Managerial Accounting [ February 4, 2013 ]
Isabel Wan

Jessi Corporation Sales Budget Quarter 1 2 3 4 Year
Budgeted sales per unit 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 the sale 65%
Percentage of sales collected in the period after the sale 30% Schedule of Expected Cash Collections
Accounts receivable beginning balance $ 70,200 $ 70,200 First quarter sales $128,700 $59,400 188,000
Second quarter sales 140,400 $64,800 205,200
Third quarter sales $163,800 $75,600 239,400
Fourth quarter sales 152,100 152,100
Total cash collections $198,900 $199,800 $228,600 227,700 $855,000

| | | | | | | | | | | | | | | | | | | Jessi Corporation | | | | | | | | | | | | | Production budget | | | | | | | | | | | | | (in units) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Quarter | | | | | | |…...

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