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):The selling price of the beach umbrellas is $10 per unit. July 42,500 October 32,500 August 95,000 November 19,000 September 64,000 December 19,500 b. 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. c. 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. 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 30 100,750 feet September 30 ? feete. Gilden costs $0.40 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 $37,660.