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Help manufactures beach umbreils. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget
Help manufactures beach umbreils. 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 (n units);: July August 92,000 November 17,500 September 61,000 December 18,000 41,000 october 31,000 The selling price of the beach umbrellas is $13 per unit. 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 58 uncollectible ales for June totaled $533,000 . 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. . Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acauire. Therefore, the companv requires that KPrey 2 of 2l Next>
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