Help Save & Exit July August September 31,000 October 71,000 November 51,000 December 21,000 11,000 11,000 The selling price of the beach umbrellas is $10 per unit. Sales in June were 26,000 units. b. All sales are on account. On the basis of past experience, sales are collected in the following pattern: 40% in the month of sale 55% in the month following sale 5% uncollectible 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 metres of Gilden, a material that is sometimes hard to get. Therefore, the company requires that the inventory of Gilden on hand at the end of each month 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 as follows: June 30 September 30 74,900 metres metres e Gilden costs $0.80 per metre. One-half of a month's purchases of Gilden are paid for in the month of purchase, the remainderare paid for in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $77.000. Prey 1 of 2 Next > WS ENG 2. Prepare a production budget for each of the months July to October. MILO COMPANY Production Budget for July October July August 3:03 September October + Total needs Help Save 3. Prepare a materials purchases budget for Gilden, by month and in total, for the third quarter. Also, prepare a schedule of expected cash payments for Gilden, by month and in total, for the third quarter. MILO COMPANY Materials Budget Month July August September Quarter + Total needs (metres) MILO COMPANY Schedule of Expected Cash Payments July August September Quarter Accounts payable June 30 July purchases August purchases September purchases Total cash payments $ 0 $ 0 $ 0 $ 0 69