Problem 8-30 (Algo) Integration of the Sales, Production, and Direct Materials Budgets [LO8-2, L08-3, LO8-4] Milo...

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Problem 8-30 (Algo) Integration of the Sales, Production, and Direct Materials Budgets [LO8-2, L08-3, LO8-4] 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: a. The Marketing Department has estimated sales as follows for the remainder of the year (in units): July August 90,000 September 59,000 40,000 October 30,000 November 16,500 December 17,000 The selling price of the beach umbrellas is $11 per unit. 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 following sale 5% uncollectible Sales for June totaled $429,000. Problem 8-30 (Algo) Integration of the Sales, Production, and Direct Materials Budgets [LO8-2, L08-3, LO8-4] 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: a. The Marketing Department has estimated sales as follows for the remainder of the year (in units): July August 90,000 September 59,000 40,000 October 30,000 November 16,500 December 17,000 The selling price of the beach umbrellas is $11 per unit. 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 following sale 5% uncollectible Sales for June totaled $429,000.