Question: table [ [ July , 3 0 , 0 0 0 , October, 2 0 , 0 0 0 ] , [ August ,
tableJulyOctober,AugustNovember,SeptemberDecember,
The selling price of the beach umbrellas is $ per unit.
b All sales are on account. Based on past experience, sales are collected in the following pattern:Sales for June totaled $c The company maintains finished goods inventories equal to of the following month's sales. This requirement will be met at the end of June.d Each beach umbrella requires feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires ending inventory of Gilden equal to of the following month's production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be:
tableJune feetSeptember feet
e Gilden costs $ per foot. Onehalf 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 for purchases of Gilden during June will be $
Required:
Calculate the estimated sales, by month and in total, for the third quarter.
Calculate the expected cash collections, by month and in total, for the third quarter.
Calculate the estimated quantity of beach umbrellas that need to be produced in July, August, September, and October.
Calculate the quantity of Gilden in feet that needs to be purchased by month and in total, for the third quarter.
Calculate the cost of the raw material Gilden purchases by month and in total, for the third quarter.
Calculate the expected cash disbursements for raw material Gilden purchases, by month and in total, for the third quarter,
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
