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 umbrellas is $12 each. b. All sales are on account. Based on past experience, sales are expected to be collected in the following pattern: Sales for June were $300,000. 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 1 metre 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 Gilden on hand at the beginning of the quarter is 18,000 metres. e. Gilden costs $3.20 per metre. One-half of a month's purchases of Gliden 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 $76,000. Required: 1. Calculate the estimated sales, by month and in total, for the third quarter. 2. Calculate the expected cash 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 Octobec. 4. Calculate the quantity of Gilden (in metres) 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. Calculate the expected cash disbursements for raw material (Giden) purchases, by month and in total, for the third quarter. Answer Is not complete. Complete this question by entering your answers in the tabs below. Calculate the estimated sales, by month and in total, for the third quarter. Salculate the expected cash collections, by month and in total, for the third quart Complete this question by entering your answers in the tabs below. Calculate the estimated quantty of beach umbrellas that need to be produced in July, August, Sep Complete thls question by entering your answers in the tabs below. 4. Calculate the quankty of cilden (in metres) 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. (Round your Unit cost of raw materials to 2 decimal places.)
