Omar Inc. manufactures an advanced swim fin for scurba divers. Management is now preparing detailed budgets for the third quarter, July through September, and has assembled the following information to assist in preparing the budget. The marketing department has estimated sales in units as follows for the remainder of the year. June 6,500 July 5,400 August 7,200 September 4,600 October 3,800

1. The selling price of the swim fins is $35 per pair.

2. All sales are on account. Based on the experience, the company has learned that 40% of a months of sales are collected in the month of sale, another 50% are collected in the month following sale, and the remaining 10% are collected in the second month of sale. May sales totaled $ 105,000 and June Sales $227,500.

3. The finished goods inventory on hand at the end of each month must be equal to 15% of the next months sales. The finished goods inventory on hand in June 30, is budgeted to be $810. 4. Each pair of swim fins requires 3 pounds of geico compound. The company would like the inventory of geico compound on hand at the end of each month to be equal to 20% of the following months production needs. The inventory of geico compound on hand on June 30 is budgeted to be 3,402 pounds and inventory on hand on September 30 is budgeted to be 2,280 pounds.

5. Geico compound costs $0.40 per pound. You are required to prepare the following budgets using the information given in the question below to answers the questions

1. Budgeted sales in Dollars

2. Schedule of Expected cash collection

3. Production Budget

4. Direct Material Budget You are required to add the following information:

1. What is the sale for the third quarter?

2. What is the amount of account receivables?

3. What is the total cash collection for the third quarter?

4. What is the ending inventory on September 30?

5. What is the total units of production for quarter?

6. What is the total Raw material purchased for the quarter?

7. What is the total cost of Raw material for the third quarter?