Problem 8-28 integration of the Sales, Production, and Direct Materials Budgets [L08-2, LO8 Mio 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 $15 per unit. 33,000 October July 23,000 August 76,000 November 9,500 September 45,000 December 10,000 b Al 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 following sale 5% uncollectible Sales for June totaled $375,000. c. The company inventories equal to 15% of the following month's sales. This requirement will be met at the end of June. d. 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 78,900 feet September 30 feet e Gilden 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 Gilden during June will be $39,390. Required 1-a. Prepare a sales budget, by month and in total for the third quarter. August September Quarter Budgeted units sales Selling price per unit Budgeted sales