Problem 8-30 Integration of the Sales, Production, and Direct Materials Budgets [LO8-2, LO8-3, 1.08-4) 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 fin units), look July 34,000 August 70, September 47,000 October November December 24,000 10,500 11,000 rences 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 5297000 Check my work The company maintains finished goods inventories equal to 15% of the following month's sales. This requirement will be chat 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 alto 50% of the following month's production needs. The ventory of Gilden hand of the beginning and end of the quarter will be 12 ponts 010958 June 30 September 81,200 reet Yet boce e Giden costs $0.80 per foot One half of a month's purchases of Gilden is paid for in the month of purchase the remainder s pod for in the following month The accounts payable on July 1 for purchases of Giden during June will be 554 920 Pri Des Required: 1. Calculate the estimated sales by month and in total, for the third quartet 2. Calculate the expected cash collections, by month and in total for the third quarter 3. Calculate the estimated quantity of beach umoreas that need to be produced in July August Septembea and October Calculate the quantity of Gilden (in feel that needs to be purchased by month and in total for the third quarter 5. Calculate the cost of the raw material (Gliden 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