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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

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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 39.000 October 79.000 November 59,000 December 29,000 19,000 19.000 The selling price of the beach umbrellas is $10 per unit. Sales in June were 34.000 units. b. All sales are on account on the basis of past experience, sales are collected in the following patter, 404 an the month Bale 554 in the month following sale 5 collectible 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 90.000 metres 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 39.000 October 79.000 November 59,000 December 29,000 19,000 19.000 The selling price of the beach umbrellas is $10 per unit. Sales in June were 34.000 units. b. All sales are on account on the basis of past experience, sales are collected in the following patter, 404 an the month Bale 554 in the month following sale 5 collectible 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 90.000 metres

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