Problem 8-30 (Sales, Production, and Direct Materials Budgets) Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter. Use the following information to assist in the budget preparation: a. The Marketing Dept estimates sales as follows for the remainder of the year (in units): July 30,000 October 20,000 August 70,000 November 10,000 September 50,000 December 10,000 The selling price of the beach umbrellas is $12 per unit. b. All sales are on account (AR not cash). 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 $300,000. C. The company maintains finished goods 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 September 30 72,000 feet ??? feet Page