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 August September 35,500 October 81,000 November 50,000 December 25,500 12,000 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 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 Gilden on hand at the beginning and end of the quarter will be: June 30 September 30 ? feet 84,650 feet e. Gilden costs $0.60 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 $43,890 Required: 1-a. Prepare a sales budget, by month and in total, for the third quarter. July August SeptemberQuarter Budgeted units sales Selling price per unit[ Budgeted sales 1-b. Prepare a schedule of expected cash collections, by month and in total, for the third quarter Milo Company Schedule of Expected Cash Collections July August September Quarter Accounts receivable, June 30: July sales August sales September sales Total cash collections 2. Prepare a production budget for each of the months July-October. Milo Company Production Budget July AugustSeptember October Budgeted unit sales Total needs Required production in units 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.) Milo Company Direct Materials Budget July August September Quarter Required production in units of finished goods Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Total units of raw materials needed Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to be purchased -b. Prepare a schedule of expected cash disbursements for Gilden, by month and in total, for the third quarter. Milo Company Schedule of Expected Cash Disbursements July AugustSeptember Quarter Accounts payable, June 30 July purchases August purchases September purchases Total cash disbursements