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 (Iin units: July August 81,000 November 12,000 September 50,000 December 12,500 35, 500 October 25,500 The selling price of the beach umbrellas is $14 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 5t uncollectible Sales for June totaled $420,000. c. The company maintains fir shed goods inventories equal to 15% o 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 end of June. 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: Prev of5 Next