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 prioe of the beach umbrellas is $13 per unit July August 41,000 October 31,000 92,000 November 7,500 September 81,000 Deoember 8,000 b.Allsales ronaount Based on pastexperienoe, sales are collected in the following pattern 30% in the month of sale 55% in the month following sale Sales for June totaled $533,000. C. The company maintains finished goods inventories equal to 15% of the following month's sales. This requirementwill 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% ofthe following month's production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be June 30 September 30feet 97,300 feet e. Gilden costs $0.80 per foot One-halfof 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 payableon July 1 for purchases of Gilden during June will be $53,790. Required: 1-a. Prepare a sales budget, by month and in total, for the third quarter Budgeted units sales Selling price per unit Budgeted sales -b. Propare a schedule of expected cash collections, by month and in total, for the third quarter Schedule of Expected Cash Collections Accounts receivable, June 30: July sales August sales September sales 2 Prepare a productiom budget for each of the months July-October Production Budget Budgeted unit sales Total needs Required production in wnits 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 prioe of the beach umbrellas is $13 per unit July August 41,000 October 31,000 92,000 November 7,500 September 81,000 Deoember 8,000 b.Allsales ronaount Based on pastexperienoe, sales are collected in the following pattern 30% in the month of sale 55% in the month following sale Sales for June totaled $533,000. C. The company maintains finished goods inventories equal to 15% of the following month's sales. This requirementwill 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% ofthe following month's production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be June 30 September 30feet 97,300 feet e. Gilden costs $0.80 per foot One-halfof 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 payableon July 1 for purchases of Gilden during June will be $53,790. Required: 1-a. Prepare a sales budget, by month and in total, for the third quarter Budgeted units sales Selling price per unit Budgeted sales -b. Propare a schedule of expected cash collections, by month and in total, for the third quarter Schedule of Expected Cash Collections Accounts receivable, June 30: July sales August sales September sales 2 Prepare a productiom budget for each of the months July-October Production Budget Budgeted unit sales Total needs Required production in wnits