Mo-Company manutactires beech umbeelas. The company is preparing detaled budgets for the third quarter and has assembled the ollowing information to assist in the budget propsration: a. The Marketing Department fias estimated soles as follows for the remainder of the year (in units): The selling price of the beach umbrellas is $14 per tinit b. All sales are on account, Based on past experlence, sales are collectod in the following pattern: Sales for june totaled $504,000. C. The company mainthins 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 umbrello requires 4 feet of Giden, a material that is sometimes hard to ocquire. Therefore, the company tequires that the ending inventory of Giden 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 bes e. Giden costs $0.60 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 Giden during June will be 549.290. Required: Calculate the estimated sales, by month and in total, for the third quarter. 2. Calculate the expected cash collections, by month and in fotal, for the third quater. 3. Colculate the estimated quantity of beach umbrellas that need to be produced in July. August, Septembec, and October. 4. Calculate the quantity of Giden (in feet) that needs to be purchased by month and in total, for the third quarter. 5. Calculate the cost of the row material (Glden) purchases by month and in total, for the third quartec. 5. Calculate the expected cash disbursements for raw material (Gilden) purchases, by month and in total, for the third quarter. Mo-Company manutactires beech umbeelas. The company is preparing detaled budgets for the third quarter and has assembled the ollowing information to assist in the budget propsration: a. The Marketing Department fias estimated soles as follows for the remainder of the year (in units): The selling price of the beach umbrellas is $14 per tinit b. All sales are on account, Based on past experlence, sales are collectod in the following pattern: Sales for june totaled $504,000. C. The company mainthins 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 umbrello requires 4 feet of Giden, a material that is sometimes hard to ocquire. Therefore, the company tequires that the ending inventory of Giden 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 bes e. Giden costs $0.60 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 Giden during June will be 549.290. Required: Calculate the estimated sales, by month and in total, for the third quarter. 2. Calculate the expected cash collections, by month and in fotal, for the third quater. 3. Colculate the estimated quantity of beach umbrellas that need to be produced in July. August, Septembec, and October. 4. Calculate the quantity of Giden (in feet) that needs to be purchased by month and in total, for the third quarter. 5. Calculate the cost of the row material (Glden) purchases by month and in total, for the third quartec. 5. Calculate the expected cash disbursements for raw material (Gilden) purchases, by month and in total, for the third quarter
