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stuck on numbers 4,5 &6 Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following
stuck on numbers 4,5 &6
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 35,500 51,000 50.000 October November December 25,500 12,000 12,500 Book The selling price of the beach umbrellas is $14 per unit b. All sales are on account. Based on past experience, sales are collected in the following pattern: Prom References 30 in the month of sale 654 in the month following sale 51 uncollectible Sales for June totaled $420,000. 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 34,650 foot feet e Gilden costs $0.60 per fool 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 $43,890. 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. po June 30 September 30 84,650 feet feet Boo e. Gilden costs $060 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 $43,890. Pt eferences 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 fin 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 (Gilder) purchases, by month and in total, for the third quarter Complete this question by entering your answers in the tabs below. Het Reg 2 Reg Reads Rego Calculate the quantity of Giden (in feet) that needs to be purchased by month and in total, for the third quarter. Calculate the cost of the raw material (Giden purchases by month and in total, for the third quarter (Round your unit cost of raw materials to 2 decimal places) July August Quarter Total units of amals to be purchased Cost of was to be purchased Step by Step Solution
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