W21 Chapter 14 1 Milo Company manufactures beach umbrellas. The company is now 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) 10 point July August September 49,000 October 89.09 November 69,000 December 39,000 29,00 29.000 The selling price of the beach umbrellas is $10 per unit. Sales in Jurie were 44,000 units. b. All sales are on account. On the basis of past experience, sales are collected in the following pattem se in the month of sale 55% in the month following sale 5% collectible 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 Each beach umbrella requires 4 metres of Gilden a material that is sometimes hard to get Therefore, the company requires that the Inventory of Gilden on hand at the end of each month be equal to 50% of the following months production needs. The inventory or Gilden on hand at the beginning and end of the quarter will be as follows W21 Chapter 14 1 Milo Company manufactures beach umbrellas. The company is now 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) 10 point July August September 49,000 October 89.09 November 69,000 December 39,000 29,00 29.000 The selling price of the beach umbrellas is $10 per unit. Sales in Jurie were 44,000 units. b. All sales are on account. On the basis of past experience, sales are collected in the following pattem se in the month of sale 55% in the month following sale 5% collectible 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 Each beach umbrella requires 4 metres of Gilden a material that is sometimes hard to get Therefore, the company requires that the Inventory of Gilden on hand at the end of each month be equal to 50% of the following months production needs. The inventory or Gilden on hand at the beginning and end of the quarter will be as follows