Helsen, inc, manufactures lampshades the company is now 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 unit sales as follows for the remainder of the year: 

July 18,000 October 23,000 

August 20,000 November 21,000 

September 25,000 December 18,000 

The selling price of the lamp shades is $18 per unit.

  

3. Prepare a material purchases budget for PTX, by month and for total, for third quarter. Also prepare a b. All sales are on credit. Based on the past experience, sales are collected in the following pattern: 20 % In the month of sales In the month following sale uncollectible 76% 4% Sales for June totaled $420,000. The company maintains finished goods inventories equal to 30% of the following month's sales. This requirement will be met at the end of June. d. Each lamp shades require 2.0 feet of PTX, a material that is sometimes hard to get. Therefore, the company requires that the inventory of PTX on hand at the end of each month be equal to 40% of the following month's production needs. The inventory of PTX on hand at the beginning and end of the quarter will be: 14,240 feet ? feet June 30 September 30 e. The PTX costs $5 per foot. 50% of a month's purchases of PTX are 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 PTX during June will be $91,000. Required: 1. Prepare sales budget, by month and in total, for the third quarter. (Show your budget in both unite dollar.) Also prepare a schedule of expected cash collections, by month and in total for ths and quarter. 2. Prepare a production budget for each of the months of July through October schedule of expected cash payments for PTX, by month and in total, for the third oe A