6 Water Sport Inc, manufactures a small personal water tube used for children learning to swim. Management is now preparing detailed budgets for the third quarter, July through September, and has assembled the following information to assist a. The Marketing Department has estimated sales as follows for the remainder of the year (number of water tubes 10 points July August September 7,800 October 4,200 6.300 November 3,000 5,300 December 3,300 202 149 eBook The selling price of the water tubes is $60. b. All sales are on account, Based on past experience, sales are expected to be collected in the following pattern: Pro 500 in the month of sale 451 in the month following sale 51 uncollectible References The beginning accounts receivable balance (excluding uncollectible amounts) on July 1 will be $166,500 c. The company maintains finished goods inventories equal to 20% of the following month's soles. The inventory of finished goods on July 1 will be 1,560 units. d. Each water tube requires 3 kilograms of synthetic polyisoprene rubber compound. To prevent shortages, the company would like the inventory of synthetic rubber compound on hand at the end of each month to be equal to 20% of the following month's production needs. The inventory of synthetic rubber compound on hand on July 1 will be 4,500 kilograms. e. The synthetic rubber compound costs $3.00 per kilogram. Water Sport pays for 70% of its purchases in the month of purchase, the remainder is paid for in the following month. The accounts payable balance for synthetic rubber compound purchases will be $15,300 on July 1 Required: 1. Prepare a sales budget, by month and in total, for the third quarter. (Show your budget in both units of water tubes and dollars.) Also prepare a schedule of expected cash collections, by month and in total, for the third quarter Check 6 Required: 1. Prepare a sales budget, by month and in total, for the third quarter (Show your budget in both units of water tubes and dollars.) Also prepare a schedule of expected cash collections, by month and in total, for the third quarter. 10 points July Bales budget August September Quarter Budgeted sales (units) Selling price per un Total budged sales book Pet September Quarter Retences Schedule of expected cash collections July August Accounts receivable beginning balance July sales: Augusts September sales Total cash collections 6 2. Prepare a production budget for each of the months July through October Production budget July August September October 10 points Budgeted sales (units) 8 023 Total needs Required production (units) eBook Print References 3. Prepare a direct materials purchases budget for synthetic rubber compound, by month and in total, for the third quarter. Also prepare a schedule of expected cash disbursements for synthetic rubber compound, by month and in total, for the third quarter. Direct materials purchases budget July August Soptomber Quarter Required production (units) Material D236 needed per unit (kos) Production needs (kg) Total Material D238 needs Raw materials to be purchased CH 6 3. Prepare a direct materials purchases budget for synthetic rubber compound, by month and in total, for the third quarter. Also prepare a schedule of expected cash disbursements for synthetic rubber compound, by month and in total, for the third quarter. 10 point Direct materials purchases budget August July September Quarter 80 Required production (unit) Material D236 needed per unit (kos) Production needs.) Total Material D236 needs Raw materials to be purchased Cost of raw materials to be purchased at $3.00 per kg Print Haferences September Quarter Schedule of expected cash disbursement July August Accounts payable, beginning balance July purchases August purchase September purchases Total cash disbursements