Problem $8-30($Algo$)$ Integration of the Sales, Production, and Direct Materials Budgets $[$LO$8-2,$ LO$8-3,$ L$08-4]$

Milo Company manufactures beach umbrellas. The company is preparing budgets for the third quarter and assembled the following information:

a$.$ The Marketing Department estimated unit sales as follows for the remainder of the year:

The selling price of the beach umbrellas is $\backslash (\backslash$$ $14\backslash )$ per unit.

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

$```$

Sales for June totaled $\backslash$$$336,000.$

c$.$ The company maintains finished goods inventories equal to $\backslash (15\backslash \%\backslash )$ of the following month's sales. This requirement will be met at the end of June.

d$.$ Each beach umbrella requires $4$ feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires ending inventory of Gilden equal to $\backslash (50\backslash \%\backslash )$ 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 $30$

$77,750$ feet

$?$ feet

e$.$ Gilden costs $\backslash (\backslash$$ $0\mathrm{.}60\backslash )$ per foot. One$-$half of a month's purchases of Gilden is paid for in the month of purchase; the remainder is paid