ALL information I was given is included! Please help
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:
The Marketing Department has estimated sales as follows for the remainder of the year (in units):
| July | 38,000 | October | 28,000 |
| August | 86,000 | November | 14,500 |
| September | 55,000 | December | 15,000 |
The selling price of the beach umbrellas is $13 per unit.
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 |
Sales for June totaled $455,000.
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 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 | 90,400 | feet |
| September 30 | ? | feet |
Gilden costs $0.60 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 $48,390.
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.
1)
| MILO COMPANY | ||||
| Sales Budget | ||||
| For Quarter 3 | ||||
| July | August | September | Quarter 3 | |
| Sales Unit | $ 38,000.00 | $ 86,000.00 | $ 55,000.00 | $ 179,000.00 |
| Unit Price | $ 13.00 | $ 13.00 | $ 13.00 | $ 13.00 |
| Total sales in dollar | $ 494,000.00 | $ 1,118,000.00 | $ 715,000.00 | $ 2,327,000.00 |
2)
| MILO COMPANY | ||||
| Expected Cash Collection | ||||
| For Quarter 3 | ||||
| July | August | September | Quarter 3 | |
| Total sales in dollar | $ 494,000.00 | $ 1,118,000.00 | $ 715,000.00 | $ 2,327,000.00 |
| Sales in June 65% | $ 295,750.00 | $ 295,750.00 | ||
| Sales in Jul 30% 65% | $ 148,200.00 | $ 321,100.00 | 148,200 321,100 | |
| Sales in Aug 30% 65% | $ 335,400.00 | $ 726,700.00 | 335,400 726,700 | |
| Sales in Sept 30% | $ 214,500.00 | $ 214,500.00 | ||
| Total cash collection | $ 443,950.00 | $ 656,500.00 | $ 941,200.00 | $ 2,041,650.00 |
3)
| MILO COMPANY | ||||
|
Production budget . |
||||
| From Jul to Oct | ||||
| July | August | September | October | |
| Sales unit | $ 38,000.00 | $ 86,000.00 | $ 55,000.00 | $ 28,000.00 |
| Ending goods inventory | $ 12,900.00 | $ 8,250.00 | $ 4,200.00 | $ 2,175.00 |
| Total needed | $ 50,900.00 | $ 94,250.00 | $ 59,200.00 | $ 30,175.00 |
| Beginning goods inventory | $ 5,700.00 | $ 12,900.00 | $ 8,250.00 | $ 4,200.00 |
| Required production | $ 45,200.00 | $ 81,350.00 | $ 50,950.00 | $ 25,975.00 |
4&5)
| MILO COMPANY | ||||
| Direct Material Budget | ||||
| For Quarter 3 | ||||
| July | August | September | Quarter 3 | |
| Required Production | $ 45,200.00 | $ 81,350.00 | $ 50,950.00 | $ 177,500.00 |
| Gilden per unit (feet) | 4 | 4 | 4 | 4 |
| Production needed | $ 180,800.00 | $ 325,400.00 | $ 203,800.00 | $ 710,000.00 |
| Ending Inventory | $ 162,700.00 | $ 101,900.00 | $ 51,950.00 | $ 51,950.00 |
| Total Needed | $ 343,500.00 | $ 427,300.00 | $ 255,750.00 | $ 761,950.00 |
| Beginning Inventory | $ 90,400.00 | $ 162,700.00 | $ 101,900.00 | $ 90,400.00 |
| Material Needed | $ 253,100.00 | $ 264,600.00 | $ 153,850.00 | $ 671,550.00 |
| Cost Per fleet | $ 0.60 | $ 0.60 | $ 0.60 | $ 0.60 |
| Total Material Cost | $ 151,860.00 | $ 158,760.00 | $ 92,310.00 | $ 402,930.00 |
6)
| MILO COMPANY | ||||
|
Expected Cash Disbursement . |
||||
|
For Quarter 3 |
||||
| July | August | September | Quarter 3 | |
| Total Material Cost | $ 151,860.00 | $ 158,760.00 | $ 92,310.00 | $ 402,930.00 |
| Payable (Jul 1) | $ 48,390.00 | $ 48,390.00 | ||
| Pay in Jul | ||||
| 50% | $ 75,930.00 | $ 75,930.00 | ||
| 50% | $ 75,930.00 | $ 75,930.00 | ||
| Pay in Aug | ||||
| 50% | $ 79,380.00 | $ 79,380.00 | ||
| 50% | $ 79,380.00 | $ 79,380.00 | ||
| Pay in Sept | ||||
| 50% | $ 46,155.00 | $ 46,155.00 | ||
| Total disbursement | $ 124,320.00 | $ 155,310.00 | $ 125,535.00 | $ 405,165.00 |
ALL information I was given is included! Please help Milo Company manufactures beach umbrellas. The company...
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: The Marketing Department has estimated sales as follows for the remainder of the year (in units): July 38,000 October 28,000 August 86,000 November 14,500 September 55,000 December 15,000 The selling price of the beach umbrellas is $13 per unit. All sales are on account. Based on past experience, sales are collected in the...
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: The Marketing Department has estimated sales as follows for the remainder of the year (in units):July35,500October25,500August81,000November12,000September50,000December12,500The selling price of the beach umbrellas is $14 per unit.All sales are on account. Based on past experience, sales are collected in the following pattern: 30%in the month of sale65%in the month following sale5%uncollectible Sales for June totaled $420,000.The company...
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: The Marketing Department has estimated sales as follows for the remainder of the year (in units): July 35,500 October 25,500 August 81,000 November 12,000 September 50,000 December 12,500 The selling price of the beach umbrellas is $14 per unit. All sales are on account. Based on past experience, sales are collected in the...
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: The Marketing Department has estimated sales as follows for the remainder of the year (in units): July 40,500 October 30,500 August 91,000 November 17,000 September 60,000 December 17,500 The selling price of the beach umbrellas is $12 per unit. All sales are on account. Based on past experience, sales are collected in the...
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: The Marketing Department has estimated sales as follows for the remainder of the year (in units): July 36,500 October 26,500 August 83,000 November 13,000 September 52,000 December 13,500 The selling price of the beach umbrellas is $10 per unit. All sales are on account. Based on past experience, sales are collected in the...
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: The Marketing Department has estimated sales as follows for the remainder of the year (in units): July 32,000 October 22,000 August 74,000 November 8,500 September 43,000 December 9,000 The selling price of the beach umbrellas is $13 per unit. All sales are on account. Based on past experience, sales are collected in the...
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: The Marketing Department has estimated sales as follows for the remainder of the year (in units): July 37,000 October 27,000 August 84,000 November 13,500 September 53,000 December 14,000 The selling price of the beach umbrellas is $11 per unit. All sales are on account. Based on past experience, sales are collected in the...
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: The Marketing Department has estimated sales as follows for the remainder of the year (in units): July 37,000 October 27,000 August 84,000 November 13,500 September 53,000 December 14,000 The selling price of the beach umbrellas is $11 per unit. All sales are on account. Based on past experience, sales are collected in the...
The Marketing Department has estimated sales as follows for the remainder of the year (in units): July42,500October32,500August95,000November19,000September64,000December19,500 The selling price of the beach umbrellas is $10 per unit.All sales are on account. Based on past experience, sales are collected in the following pattern: 30%in the month of sale65%in the month following sale5%uncollectible Sales for June totaled $440,000.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...
The Marketing Department has estimated sales as follows for the remainder of the year (in units): July42,500October32,500August95,000November19,000September64,000December19,500 The selling price of the beach umbrellas is $10 per unit.All sales are on account. Based on past experience, sales are collected in the following pattern: 30%in the month of sale65%in the month following sale5%uncollectible Sales for June totaled $440,000.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...