do not prepare the cash collections budget. show the budgets for july, august, september and for tge quarter (july - september)

PROBLEM 9-27 Integration of the Sales, Production, and Direct Materials Budgets [LO2, LO3, L04] Milo 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): July.. August September 30,000 70,000 50,000 October November December 20,000 10,000 10,000 The selling price of the beach umbrellas is $12 per unit. Profit Planning b. All sales are on account. 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 beach 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 inventory of Gilden on hand at the beginning and end of the quarter will be: June 30... 72,000 feet September 30 ? feet Gilden costs $0.80 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 I for purchases of Gilden during June will be $76,000