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:

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

The selling price of the beach umbrellas is $12 per unit.

July		40,500		October		30,500
August		91,000		November		17,000
September		60,000		December		17,500

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 $480,000.

The company maintains finished goods inventories equal to 15% of the following months 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 months production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be:

June 30	96,150	feet
September 30	?	feet

Gilden costs $0.60 per foot. One-half of a months 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 $52,890.

2. Prepare a production budget for each of the months JulyOctober.

Production Budget
	July	August	September	Quarter
Budgeted Unit Sales
Total Needs
Required production in units