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:

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has assembled the following information to assist in the Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and 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 $10 per unit July August 39,500 October 89,000 November 58,000 December 29,500 16,000 16,500 b. All sales are on account. Based on past experience, sales are collected in the following pattern 30% inthe month of sale 86% in the month following sale 5% uncollectible Sales for June totaled $380,000 vento es equal to umbrella requires 4 feet of Gilden, a matenial that is sometimes hard to acquire. shed goods 15% of the following month's sales. This requirement will be met at the end of June. c. The company maintains d. Each beach Therefore, the company requires that the ending inventory of Gilden be equa hand at the beginning and end of the quarter will be: to 50% of the following month's production needs. The inventory of Gilden on 93,850 feet ? feet June 30 e. Gilden costs 50.80 per foot. One-half of a month's purchases of Gilden payable on July 1 for purchases of Gilden during June will be $68, 120, is paid for in the month of purchase; the remander is paid for in the folowing month. The accounts