Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation:

a$.$ The Marketing Department has estimated sales as follows for the remainder of the year $($in units$)$:

Month Units

July $30,000$

August $70,000$

September $50,000$

October $20,000$

November $10,000$

December $10,000$

The selling price for each umbrella is $$12$ per unit.

b$.$ All sales are on account $($credit$).$ Based on past experience, sales are collected in the following pattern:

$30\%$ in the month of sale

$65\%$ in the month following sale

$5\%$ uncollectible

Sales for June totaled $$300,000.$

c$.$ The company maintains finished goods inventories equal to $15\%$ of the following month$$s sales. This requirement will be met at the end of June.

d$.$ 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 month$$s production needs. The raw material inventory of Gilden on hand at the beginning and end of the quarter will be:

June $30............72,000$ feet

September $30.....37,000$ feet

e$.$ Gilden costs $$0\mathrm{.}80$ per foot. One$-$half of a month$$s 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.$

Production Budget for the third quarter broken into months with a total column.

$3.$ Calculate the quantity of Gilden $($in feet$)$ that needs to be purchased by month and in total for the third quarter. Calculate the cost of raw material $($Gilden$)$ purchases by month and in total for the third quarter. For this requirement, you will prepare the Direct Materials Budget for the third quarter broken into months with a total column.

$4.$ Prepare the Schedule of Expected Cash Collections, by month and in total, for the third quarter.

$5.$ Prepare the Schedule of Expected Payments of Direct Materials $($Gilden$)$ purchases by month and in total for the third quarter.