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 $15 per unit.

July36,000October26,000August82,000November12,500September51,000December13,000

b.All sales are on account. Based on past experience, sales are collected in the following pattern:

30%in the month of sale65%in the month following sale5%uncollectible

Sales for June totaled $465,000.

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 3085,800feetSeptember 30?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 $44,790.

Required:1-a. sales budget, by month and in total, for the third quarter.

1-b. schedule of expected cash collections, by month and in total, for the third quarter.

2. production budget for each of the months July-October.

3-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-b. schedule of expected cash disbursements for Gilden, by month and in total, for the third quarter.