My answers 2-6 are incorrect. Problem 8-30 Integration of the Sales, Production,

Question

My answers 2-6 are incorrect.

Problem 8-30 Integration of the Sales, Production, and Direct Materials Budgets [LO8-2, LO8-3, L08-4] 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 as follows for the remainder of the year (in units): July August 92,000 November 17,500 September 61,000 December 18,000 41,000 October 31,000 The selling price of the beach umbrellas is $13 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 $533,000

Explanation / Answer

2 CASH COLLECTION June July August September Total for the quarter Sales $533,000 $        533,000 $        1,196,000 $        793,000 Collection from June sales $159,900 $346,450 Collection from July sales $159,900 $346,450 Collection from August sales $358,800 $777,400 Collection from Sept. sales $        237,900 Total Cash Collection $    1,039,350 $        1,901,250 $     1,808,300 $                 4,748,900 3 REQUIRED PRODUCTION IN UNITS July August September Total October Nov A Sales 41000 41000 92000 61000 194000 31000 17500 B Ending Finished goods inventory 6150 13800 9150 4650 2625 C Beginning inventory 6150 13800 9150 4650 D=A+B-C Production 48650 87350 56500 192500 28975 4&5 RAW MATERIALS PURCHASE June July August September Total A Amount required for production (feet) 194600 349400 226000 192500 B Ending Inventory 97300 174700 113000 14487.5 C Beginning inventory 97300 174700 113000 D=A+B-C Total units to be purchased 272000 287700 127487.5 687187.5 Cost of raw materials to be purchased $        163,200 $            172,620 $           76,493 $                    412,313 6 EXPECTED CASH DISBURSEMENT July August September Total Disbursement for June purchase $53,790 Disbursement for July purchase $      81,600.0 $          81,600.0 Disbursement for Aug. purchase $          86,310.0 $       86,310.0 Disbursement for Sep. purchase $     38,246.25 Total disbursement for raw material purchase $135,390 $167,910 $124,556 $427,856

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