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: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 $$13$ 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

$65\%$ in the month following sale

$5\%$ uncollectible

Sales for June totaled $$455,000.$

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.

The Marketing Department has estimated sales as follows for the remainder of the year $($in units$)$:

July $38,000$ October $28,000$

August $86,000$ November $14,500$

September $55,000$ December $15,000$

The selling price of the beach umbrellas is $$13$ per unit.

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 $$455,000.$

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.

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 $3090,400$ feet

September $30?$ feet

Gilden costs $$0\mathrm{.}60$ per foot. One$-$half of a month$$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 $$48,390.$

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.