Crydon, Inc., manufactures an advanced swim fin for scuba divers. Management is

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Crydon, Inc., manufactures an advanced swim fin for scuba divers. Management is now preparing detailed budgets for the third quarter, July through September, and has assembled the following information to assist in preparing the budget: The Marketing Department has estimated sales as follows for the remainder of the year (in pairs of swim fins): The selling price of the swim fins is $13 per pair. July 5,400 October 3,400 august 6,400 November 2,400 September 4,400 December 2,400 All sales are on account. Based on past experience, sales are expected to be collected in the following pattern: 44% in the month of sale 48% in the month following sale 8% uncollectible the beginning accounts receivable balance (excluding uncollectible amounts) on July 1 will be $140,000. The beginning accounts receivable balance (excluding uncollectible amounts) on July 1 will be $140,000. The company maintains finished goods inventories equal to 10% of the following month's sales. The inventory of finished goods on July 1 will be 540 pairs. Each pair of swim fins requires 2 pounds of geico compound. To prevent shortages, the company would like the inventory of geico compound on hand at the end of each month be be equal to 20% of the following month's production needs. The inventory of geico compound on hand on July 1 will be 2,200 pounds. Geico compound costs $3.00 per pound. Crydon pays for 58% of its purchases in the month of purchase; the remainder is paid for in the following month. The accounts payable balance for geico compound purchases will be $11,100 on July 1. Prepare a sales budget, by month and in total, for the third quarter. July August September Quarter-Total Total budgeted sales $ $ $ $ Prepare a schedule of expected cash collection, by month and in total, for the third quarter. (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations.) Schedule of Expected Cash Collection July August September Quarter-Total Accounts receivable, beginning balance $ $ $ $ July sales August sales September sales Total cash collections $ $ $ $ Prepare a production budget for each of the months July through October. (Input all amounts as positive values.) Production Budget July August September October Budgeted sales (pairs) Add Ending inventory Total needs Deduct Beginning inventory Required production (pairs) Prepare a direct materials budget for geico compound, by month and in total, for the third quarter. (Do not round intermediate calculations. Round your answers ot the nearest dollar amount. Input all amounts as positive values.) Direct Materials Budget July August September Quarter-Total Production needs (lbs.) Add Ending inventory Total need Deduct Beginning inventory Raw materials to be purchased Cost of raw materials to be purchases $ $ $ $ Prepare a schedule of expected cash disbursements for geico compound, by month and in total, for third quarter. (Do not round intermediate calculation. Round your answers to the nearest dollar amount. Leave no cells blank - be certain to enter "0" wherever required.) Schedule of Expected Cash Disbursements July August September Quarter-Total Accounts payable, beginning balance $ $ $ $ July purchases August purchases September purchases Total cash payments $ $ $ $

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Crydon, Inc., manufactures an advanced swim fin for scuba divers. Management is

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