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Sun Company manufacturers 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 $30,000$

August $70,000$

September $50,000$

October $20,000$

November $10,000$

December $10,000$

The selling price of the umbrellas is $$12$ each.

b$)$ All sales are on account. Based on past experience, sales are expected to be collected in the following pattern:

$30\%$ In the month of sale

$65\%$ In the month following sale

$5\%$ uncollectable

Sales for June were $$300,000$

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 $1$ meter 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 Gildwn on hand at the beginning of the quarter is $18,000$ meters.

e$)$ Gilden costs $$3\mathrm{.}20$ per meter. One$-$half of a month$$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 $$76,000.$

Required:

$1.$ Calculate the estimates 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.

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