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i posted these questions but the answers were wrong Milo Company manufactures beach umbrellas. The company is now preparing detailed budgets for the third quarter
i posted these questions but the answers were wrong
Milo Company manufactures beach umbrellas. 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 sales as follows for the remainder of the year (in units); July August September 42,080 October 82,000 November 62,000 December 32,000 22,000 22,000 The selling price of the beach umbrellas is $12 per unit. Sales in June were 37000 units b. All sales are on account. On the basis of past experience, sales are collected in the following pattern 301 in the month of sale 651 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 Gliden on hand at the beginning and end of the quarter will be as follows: June 30 September 30 96,000 metres 7 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 remainder are paid for in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $88,000 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. Production needs meters) Add: Desired ending inventory (metres) Total needs (metres) Deduct Beginning inventory (metres) Raw materials to be purchased (meters) Cost of raw materials to be purchased Answer is not complete. MILO COMPANY Materials Budget Month July August September Quarter 192,000 316,000 230,000 738,000 158.000 115.000 703 350.000431.000 230,007 95.000 158,000 115,000 254,000 273.000 115.007 642,007 5203.200 $218.400$ 92,006 $513,606 Answer is not complete. MILO COMPANY Schedule of Expected Cash Payments July August September Accounts payablo, Juno 30 $ 88,000 July purchases 101,600 101,600 August purchases 109,200 109,200 September purchases 46,003 Total cash payments $ 189,600 $ 210,800 $ 155.203 Quarter $ 88,000 203,200 5555,603 Step by Step Solution
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