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Milo Company manufactures beach umbrellas. The company is preparing budgets for the third quarter and assembled the following information: a . The Marketing Department estimated
Milo Company manufactures beach umbrellas. The company is preparing budgets for the third quarter and assembled the following information: a The Marketing Department estimated unit sales as follows for the remainder of the year: tableJulyOctober,AugustNovember,SeptemberDecember, The selling price of the beach umbrellas is $ per unit. b All sales are on account. Based on past experience, sales are collected in the following pattern:Sales for June totaled $c The company maintains finished goods inventorles equal to of the following month's sales. This requirement will be met at the end of June.d Each beach umbrella requires feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires ending inventory of GIIden equal to of the following month's production needs. The inventory of GIIden on hand at the beginning and end of the quarter will be:d Each beach umbrella requires feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires ending inventory of Gilden equal to of the following month's production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be:June September feet? feete. Gilden costs $ per foot. Onehalf of a month's purchases of Gilden is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable on July for purchases of Gilden during June will be $ Required: Calculate the estimated sales, by month and in total, for the third quarter. Colculate the expected cash collections, by month and in total, for the third quarter. Colculate the estimated quantity of beach umbrellas that need to be produced in July, August, September, and October. Calculate the quantity of Gilden in feet that needs to be purchased by month and in total, for the third quarter. Colculate the cost of the raw material Gilden purchases by month and in total, for the third quarter. Calculate the expected cash disbursements for raw material Gilden purchases, by month and in total, for the third quarter.
Milo Company manufactures beach umbrellas. The company is preparing budgets for the third quarter and assembled the following information:
a The Marketing Department estimated unit sales as follows for the remainder of the year:
tableJulyOctober,AugustNovember,SeptemberDecember,
The selling price of the beach umbrellas is $ per unit.
b All sales are on account. Based on past experience, sales are collected in the following pattern:Sales for June totaled $c The company maintains finished goods inventorles equal to of the following month's sales. This requirement will be met at the end of June.d Each beach umbrella requires feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires ending inventory of GIIden equal to of the following month's production needs. The inventory of GIIden on hand at the beginning and end of the quarter will be:d Each beach umbrella requires feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires ending inventory of Gilden equal to of the following month's production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be:June September feet? feete. Gilden costs $ per foot. Onehalf of a month's purchases of Gilden is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable on July for purchases of Gilden during June will be $
Required:
Calculate the estimated sales, by month and in total, for the third quarter.
Colculate the expected cash collections, by month and in total, for the third quarter.
Colculate the estimated quantity of beach umbrellas that need to be produced in July, August, September, and October.
Calculate the quantity of Gilden in feet that needs to be purchased by month and in total, for the third quarter.
Colculate the cost of the raw material Gilden purchases by month and in total, for the third quarter.
Calculate the expected cash disbursements for raw material Gilden purchases, by month and in total, for the third quarter.
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