Problem 8-30 Integration of the Sales, Production, and Direct Materials Budgets [LO8-2, L08-3, L08-4] 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 September 36,000 82,000 51,000 October November December 26,000 12,500 13,000 The selling price of the beach umbrellas is $15 per unit. b. All sales are on account. Based on past experience, sales are collected in the following pattern: 300 in the month of sale 65% in the month following sale 56 uncollectible Sales for June totaled $465,000. c. The company maintains finished goods Inventorles 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 September 30 85,800 feet 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 pald for in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $44,790. Required: 1. Calculate the estimated sales, by month and In total, for the third quarter. 2. Calculate the expected cash collections, by month and In total, for the third quarter. 3. Calculate the estimated quantity of beach umbrellas that need to be produced in July, August, September, and October. 4. Calculate the quantity of Gilden (in feet) that needs to be purchased by month and In total, for the third quarter. 5. Calculate the cost of the raw material (Gilden) purchases by month and In total, for the third quarter. 6. Calculate the expected cash disbursements for raw material (Gilden) purchases, by month and In total, for the third quarter