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	44,000	October	34,000
August	84,000	November	24,000
September	64,000	December	24,000

The selling price of the beach umbrellas is $12 per unit. Sales in June were 39,000 units.

b.	All sales are on account. On the basis of past experience, sales are collected in the following pattern:

30%	in the month of sale
65%	in the month following sale
5%	uncollectible

c.	The company maintains finished goods inventories equal to 15% of the following months 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 months production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be as follows:

June 30	100,000	metres
September 30	?	metres

e.	Gilden costs $0.80 per metre. One-half of a months 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 $90,000.