Milo Company manufactures beach umbrellas. The company is preparing detailed bud

Question

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 asfollows for the remainder of the year (in units) The selling price of the beach umbrellas is $15 per unit. Jul 42,000 October 32,000 18,500 September 63,000 December 9,000 b. All sales are on account. Based on past experience, sales are collected in the following pattern 30% in the month of sale 65% in the month following sale 5% uncollectible C. The company maintains finished goods inventories equal to 15% of the following month's sales. This 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 30feet 99,600 feet

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Milo Company manufactures beach umbrellas. The company is preparing detailed bud

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