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Milo Company manufactures beach umbrellas. The company is preparing detalled budgets for the third quarter and has assembled the following information to assist in the
Milo Company manufactures beach umbrellas. The company is preparing detalled 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 remalnder of the year In units:
tableJulyOctober,AugustNovember,SepteniberDecember,
The selling price of the beach umbrellas is $ per unit.
b All sales are on account. Based on past experlence, sales are collected in the following pattern:
the month sale
the month following sale
uncollectible
Sales for June totaled $
c The company maintains finished goods inventorles equal to of the following month's sales. This requirement will be met at the end of June.
d Each beach umbrella requires feet of Gilden, a materlal that is sometimes hard to acqulre. Therefore, the company requlres that the ending Inventory of Gilden be equal to of the following month's production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be:
tableJune feetSepteniber feet
e Gilden costs $ per foot. Onehalf of a month's purchases of Gilden Is pald for in the month of purchase; the remainder Is pald for in the following month. The accounts payable on July for purchases of Gilden during June will be $
Required:
Calculate the estimated sales, by month and In total, for the third quarter.
Calculate the expected cash collectlons, by month and In total, for the third quarter.
Calculate the estimated quantly of beach umbrellas that need to be produced in July. August, September, and October.
Calculate the quantity of Gilden In feet that needs to be purchased by month and In total, for the third quarter.
Calculate the cost of the raw materlal Gilden purchases by month and in total, for the third quarter.
Calculate the expected cash disbursements for raw materlal Gilden purchases, by month and In total, for the third quarter.
Complete this question by entering your answers in the tabs below.
Req
Req
Req and
Req
Calculate the estimated sales, by month and in total, for the third quarter.
tableJuly,August,September,QuarterBudgeted sales,,,,
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