Answer Requirement 6

Milo Company manufactures beach umbrellas. The company is preparlng budgets for the third quarter and assembled the following Information: a. The Marketing Department estimated unit sales as follows for the remalnder of the year. The selling price of the beach umbrellas is $11 per unit. b. All sales are on account. Based on past experlence, sales are collected In the following pattern: 39% in the month of sale 65% in the month following sale 5% uncollectible 39% in the month of sale 65% in the month following sale 5% uncollectible Sales for June totaled $429,000. c. The company malntains finished goods Inventorles equal to 15% of the following month's sales. This requirement will be met at the end of June. d. Each beach umbrella requires 4 feet of Gllden, a materlal that Is sometimes hard to acquire. Therefore, the company requires ending Inventory of Gilden equal to 50% of the following month's production needs. The Inventory of Glden on hand at the beginning and end of the quarter will be: June 3 september 3 95,00 feet ? feet e. Gilden costs $0.60 per foot. One-half of a month's purchases of Gllden Is pald for In the month of purchase; the remainder is pald for in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $51,990. 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. 4. Calculate the quantlty of Gliden (In feet) that needs to be purchased by month and in total, for the third quarter. 5. Calculate the cost of the raw materlal (Gllden) purchases by month and In total, for the third quarter. 6. Calculate the expected cash disbursements for raw materlal (Gilden) purchases, by month and in total, for the third quarter. Complete this question by entering your answers in the tabs below