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: a. The Marketing Department has estimated sales as follows for the remainder of the year (in units): The selling price of the beach umbrellas is $14 per unit. July 35,500 October 25,500 August 81,000 November 12,000 September 50,000 December 12,500 ________________________________________ b. All sales are on account. Based on past experience, sales are collected in the following pattern: 30 % in the month of sale 65 % in the month following sale 5 % uncollectible ________________________________________ Sales for June totaled $420,000. 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 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 months production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be: June 30 84,650 feet September 30 ? feet ________________________________________ e. Gilden costs $0.60 per foot. One-half of a months 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 $43,890. Required: 1-a. Prepare a sales budget, by month and in total, for the third quarter. July August September Quarter Budgeted units sales 35,500 81,000 50,000 166,500 Selling price per unit $14 $14 $14 $14 Budgeted sales $497,000 $1,134,000 $700,000 $2,331,000 1-b. Prepare a schedule of expected cash collections, by month and in total, for the third quarter. 2. Prepare a production budget for each of the months JulyOctober. 3-a. Prepare a direct materials budget for Gilden, by month and in total, for the third quarter. (Round your Unit cost of raw materials to 2 decimal places.) 3-a. Prepare a direct materials budget for Gilden, by month and in total, for the third quarter. (Round your Unit cost of raw materials to 2 decimal places.)