Problem 8.30 (Static) Integration of the Sales, Production, and Direct Materlals Budgets [LO8-2, LO8-3, LO8-4] Milo Company manufactures beach umbrellas. The company is preparing detalled 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 unlts): The selling price of the beach umbrellas is $12 per unit. b. All sales are on account. Based on past experlence, 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 finlshed 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 materlal that is sometlmes 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: June30Septermer3072,000feet?feet e. Gllden costs $0.80 per foot. One-half of a month's purchases of Gllden is pald for in the month of purchase; the remainder is pald for In the following month. The accounts payable on July 1 for purchases of Glden durling June will be $76,000. Required: 1. Calculate the estimated sales, by month and In total, for the third quarter. 2. Calculate the expected cash collectlons, by month and In total, for the thirol quarter. 3. Calculate the estimated quantIty of beach umbrellas that need to be produced in July. August, September, and October. 4. Calculate the quantlty 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 materlal (Gilden) purchases by month and in total, for the third quarter. 6. Calculate the expected cash disbursements for raw materlal (Gilden) purchases, by month and In total, for the third quarter. Complete this question by entering your answers in the tabs below. Req 2 Req 4 and 5 Calculate the estimated sales, by month and in total, for the third quarter