ABC company sales Umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist the budget preparation:

The Marketing department has estimated sales for the remaining part of the year (in units):

July . . . . . . . . . . . . . . . . . . . . 30,000

August. . . . . . . . . . . . . . . . . . 70,000

September . . . . . . . . . . . . . . 50,000

October. . . . . . . . . . . . . . . . . 20,000

November. . . . . . . . . . . . . . . 10,000

December. . . . . . . . . . . . . . . 10,000

30% in the month of sale 65% in the following month sale 5% uncollectible. The selling price of the beach umbrellas is $12 per unit. All sales are on account. Based on past experience, sales are collected in the following pattern: sales for June total $300,000.

The company maintains finished goods inventories equal to 15% of the following months sales. This requirement will be meet at the end of June. Each umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires that the ending inventory of Gilden be equal to 50% of the following months production needs. The inventory of Gilden on hand at the beginning was 72000 feet. Gilden costs $0.80 per foot. One-half of a months purchases of Gilden is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $76,000.

Required:

1. Calculate the estimated sales, by month and in total, for the third quarter.

2. Calculate the expected cash collections, by month and in total, for the third quarter.

3. Calculate the estimated quantity of beach umbrellas that need to be produced in July, August, September, and October.