Problem 8-30 Integration of the Sales, Production, and Direct Materials Budgets [LO8-2, L08-3, L08-4) Mila company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled me 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 33,508 77,008 46, cee October November December 23,568 18. Dee 1,500 The selling price of the beach umbrellas is $10 per unit b. All sales are on account. Based on past experience, sales are colected in the following pattern: 30 in the month of sale 65 in the month following sale 51 Uncollectible Sales for dune totaled $260,000. c. The company maintains finished goods inventores equal to 15% of the following month's sales. This requirement will be met at the end of June. d. En beach umbrella requires 4 feet of Gilden, material that is sometimes hard to occulte. Therefore, the company requires that the ending inventory of Gilden be equal to 50% of the following months production needs. The riventory of Gilden on hand at the beginning and end of the quarter will be Problem 8-30 Integration of the Sales, Production, and Direct Materials Budgets [L08-2, LO8-3, 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 September 33,58 77,880 46,88 October November December 23,5ee 19.oe 1e, sed The selling price of the beach umbrellas is $10 per unit. b. All sales are on account. Based on past experience, sales are collected in the following pattern: in the month of 655 in the month following sale Sales for June totaled $260.000 The company maintains inished goods inventores equal to 15% of the following months sales. This tecuirement de met at the end of June Fach peace requires 4 feet of material that is sometimes hard to w here els e me enginventory of North Yollowing months late the entirdetton and at the decenning and end of the quarter w be 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: Dune Be September se 80, ese Feet feet e. Giiden costs $0.80 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 $53,720. 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. Complete this question by entering your answers in the tabs below. calculate the estimated sales, by month and in total for the third quartet Reg 2 >