80.2K

Verified Solution

Link Copied!

please help

Milo Company manufactures beach umbrellas. The company is preparing detalied 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): The selling price of the beach umbrellas is $12 per unit. b. All soles are on account. Based on past experience, sales are coliected in the following pattern: Sales for June totaled $408,000. 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 umbrelia 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: e. Gilden costs $0.60 per foot. One-half of a month's purchases of Gilden is paid for in the month of purchase, the ramainder is paid for in the following month. The accounts payable on July 1 for purchases of Gilden during June wil be 547,490 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 Octaber. 4. Calculate the quantity of Gilden (in feet) that needs to be purchased by month and in total, for the third quartet. 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 totat, for the third quarter Complete this question by entering your answers in the tabs below. Calculate the estimated sales, by month and in total, for the third quarter

Answer & Explanation Solved by verified expert

See Answer