Problem 8-30 (Static) Integration of the Sales, Production, and Direct Materials Budgets [LO8-2, LO8-3, L.O8-4) Milo Company manufactues beach umbrellas. The company is prepacing detailed budgets for the thud quarter and has assembled thefollowing information to absist in the budget preparation: a. The Markening Department has ectimaned sales as follows for the remulfuder of the year (fir units) The selling price of the beach umbretlas is 512 per unit. 5. Alf sales are on account Based on past experience; saies are collected in the followirn pattern Sales for June fotaled $300,000 c. The compary mairitains finished goods imwentories equal to 15% of the foligwing month'ts sales. Ths requirerient wril be met at the find of June. 4. Each becach umbtelia requies 4 feet of Giden, a matetial that is sometimes hard to acquite. Therefore, the compary requires that the ending inventory of Gilfen be equal to stow of the following month's production neceds. The wveriory of Gaken ae hand at the beginning and end of the quarter will be: e. Giden cests $080 per foot. Ore-fal of a month's petchases of Gulden 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 $76,000. ind of Joke. a. Each beach umbecis requires 4 feet of Gisfer, a material that is sometimes hard to acquase. Therefore, the compary requires that the ending inventery of Giden be cqual to 50% of the following mantit's production needs. The invertiory of Gilden on hand at the beginning arkf end of the quarter will be e. filden costs 50.80 par foot One hair of a month's surchases of Gilden is paid for in the month of purchase; the remainder is paid for in the following month. The accoures psyable on 3 wy 1 for purchases of cilden during June will be 576,000 Required: 1. Calcilote the estimated sales, by month and 1 fotia for the thrid quarter. 2. Colculate the expected cash collectons, by month and in total, tor the third quarter. 3. Calculate the estimated quartity of beech urnbrellas that need to be produced in July August September, and October. 4. Cakulde the quaritity of caden in reely that needs to be purchased by month and in total, for the third quarter 5. Calculate the cost of the raw masental (Kalkent purchases by morith and in total, for the third quartes. Complete thas yuestion by getering your answers in the tabs below. Calculate the extimated nales, by monet and in total, for the third euarter