PROBLEM 2-28 Integration of the Sales Prestation, and Dimet Material Budget 200-2,00-4 L00-4 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): July August September 30.000 October 70,000 November 50,000 December 20,000 10.000 10,000 The selling price of the beach umbrellas is $12 per unit. All sales are an account. Based on past experience, sales are collected in the following pattern: b. 30% in the month of sale 65% in the month following sale 5% uncollectible c d. Sales for June totaled $300,000 The company maintains finished goods investories equal to 15% of the following month's 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 month's production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be June 30 September 30 72.000 feet 2 Gilden costs S0.80 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 Gilden during June will be $76.000. Required: 1. Prepare a ales budget, by month and is local, for the third quartet. (Show your budget in both units and dollar:) Also prepare a schedule of expected cash collection by month and in total for the third quartier 2. Prepare a production budget for each of the months July-Octobet 3. Prepare a direct materials budget for Gilden. by month and in teal for the third quarter. Aho prepare a schedule of expected cash disbursements for Gilden by month and in total for the a third quarter