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Please help me Mlo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to
Please help me Mlo 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 (in units) The selling price of the beach umbrellas is $11 per unit 40,000 October July August 30,000 90,000 November 16,500 September 59,000 December 17,000 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 folowing sale 5% uncollectible Sales for June totaled $429,000 c The company maintains finished goods inventories equal to 15% of the following month's sales. This d. Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, requirement will be met at the end of June the company requires that the ending mentory 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: June 30 September 30 95,000 feet feet e. Gilden costs $0 60 per foot. One-half of a month's purchases of Giden 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 wit be $51,990 Required: 1-a Prepare a sales budget, by month and in total, for the third quarter July AugustSeptember Quarter Budgeted units sales Selling price per unit Budgeted sales 1-0, Prepare a schedue of expected cash collectons by month and in total, for the third quarter Schedule of Expected Cash Collections ulyAugust SeptemberQuarter Accounts receivable June 30 July sales August sales September sales Total casn colilections
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