Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: o. The Marketing Department has estimated sales as follows for the remainder of the year (in units) July August September 36,500 83,000 52,000 October November December 26,500 13,00 13,500 The selling price of the beach umbrellas is $10 per unit b. All sales are on account Based on past experience sales are collected in the following pattern 38% in the month of sale 65% in the month following sale 5% uncollectible Sales for June totaled $320.000 Soles for June totaled $320.000, 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 feet of Gilden a material that is sometimes hard to acquire. Therefore the company requires that the ending Inventory of Gilden 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: June 30 September 30 86,950 feet ? feet e Gilden costs $0.80 per foot One-half 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 1 for purchases of Gilden during June will be $60,920 Required: Calculate the estimated sales, by month and in total, for the third quarter 2. Calculate the expected cosh collections, by month and in total, for the third quarter 3. Calculate the estimated quantity of beach umbrellas that need to be produced in July August September, and October 4. Calculate the quantity of Gilden (in feet) that needs to be purchased by month and in total for the third quarter. 5. Calculate the cost of the raw material (Gilden) purchases by month and in total for the third quarter 6- Celestole the expected.comments for raw material Giteten purchase ty montithin total for the-de-Greter Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Req3 Req 4 and 5 Calculate the estimated sales, by month and in total, for the third quarter. Budgeted sales July August September Quarter $360,000 $ 840,000 $ 60,000 $ 1,800,000 REG Req 2 > Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req3 Req 4 and 5 Calculate the expected cash collections, by month and in total, for the third quarter. July August September Quarter Total cash collections $ 303,000 $ 486,000 $ 726,000 $1,515,000 Reg 1 Reg 2 Reg 3 Reg 4 and 5 Calculate the estimated quantity of beach umbrellas that need to be produced in July, August, se October July 36,000 Required production in units August 67,000 September 45,500 18,500 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Req 4 and 5 Calculate the quantity of Gilden (in feet) that needs to be purchased by month and in total, for the third quar most of the raw material (Gilden) purchases by month and in total, for the third quarter. (Round your Unit cost terals to 2 decimal places.) Total units of raw materials to be purchased Cost of raw materials to be purchased July August 164,800 180,000 158,400 $ 172,400 September Quarter 102,400 447,200 $ 141,200 $ 472,000
