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 July August September 3e,eee 70, eee 50,000 October November December 20, Bee 10. Bee 18, see The selling price of the beach umbrellas is $12 per unit. b. All sales are on account. Based on past experience, sales are collected in the following pattern: 30% in the month of sale 6SX in the month following sale 5% uncollectible Sales for June totaled $300.000. end of June. c. The company maintains finished goods inventories equal to 15% of the following month's sales. This requirement will be met at the 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 Gaden be equal to 50% of the following month's production needs. The inventory of Giiden on hand at the beginning and end of the quarter will be: June 30 September 30 72,eee feet ? feet e. Gliden costs $0.80 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 $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 October 4. Calculate the quantity of Gliden (in feet) 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 quartet 6. Calculate the expected cash disbursements for raw material (Giiden purchases, by month and in total, for the third quarter Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Reg 3 Reg 4 and 5 Reg 6 Calculate the expected cash disbursements for raw material (Gilden) purchases, by month and in total, for the third quarter. July August September Quarter Total cash disbursements a. The Marketing Department has estimated sales as follows for the remainder of the year (in units); July August September 30,000 70.000 Se,000 October November December 20, ee 10,000 10.000 The selling price of the beach umbrellas is $12 per unit b. Al 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 $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 4 feet of Gilden. a material that is sometimes hard to acquire. Therefore, the company requires that the ending invertory 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 72,000 feet feet e. Gilden costs $0.80 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 $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 October 4. Calculate the quantity of Gilden (in feet) 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 (Gilden) purchases, by month and in total for the third quarter Complete this question by entering your answers in the tabs below. Reg1 Reg 2 Rega Re 4 and 5 Reg 6 Calculate the expected cash collections, by month and in total, for the third quarter Tot cash collections August September Quarter Reg1 Reg 3 > 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) July August September 30,000 7e, eee 50,000 October November December 20,000 10.ee 10, see The selling price of the beach umbrellas is $12 per unit d. All sales are on account. Based on past experience, sales are collected in the following pattern 303 in the month of sale 65% in the month following sale 5* uncollectible Sales for June totaled $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 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 Giden on hand at the beginning and end of the quarter will be: June 30 September 3e 72,300 feet 7 feet e Gilden costs $0.80 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 Giden during June will be 576.000. Required: 1 Calculate the estimated sales, by month and in total, for the third quartet 2. Calculate the expected cash collections, by month and in total, for the third quartet 3. Calculate the estimated quantity of beach umbrellas that need to be produced in July, August, September and October 4. Calculate the quantity of Gilden (in feet that needs to be purchased by month and in total, for the third quarter 6. 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 Complete this question by entering your answers in the tabs below. Res 1 Res 2 Rega Req 4 and 5 Reg 6 Calculate the estimated sales, by month and in total, for the third quarter Budgeted sales August $ 1.040.000 5 466,00 September Quarter 5 637,000 $2.132.000 Reg 2 >