Required information [The following information applies to the questions display

Question

Required information [The following information applies to the questions displayed below ] Morganton Company makes one product and it provided the following information to help prepare the master budget a. The budgoted seling pnice per unit es $60 Budgeted unit sales for June, July, August, and September are 9,80,.23,0 00, 31,000, and 32,000 units, respectively All sales are on credit b. Thirty percent of C. The ending finished goods inventory equals 20% of the following month's unit sales. credit sales are collected in the month of the sale and 70% in the following month e ending raw materials month's raw materials production needs Each unit of inventory equals 10% of the following finished goods requires 4 pounds of raw materials. The raw materials cost $2.50 per pound percent of raw materials purchases are paid for in the month of purchase and 70% in the following month f. The direct labor wage rate is $15 per hour Each unit of finished goods requires two direct labor hours g. The variable selling and administrative expense per unit sold is $1 80. The fixed selling and administrative expense p er month is $68,000 3. What is the accounts receivable balance at the end of July? unts receivabl

Explanation / Answer

3. July sales = 29,000 × $60 = $1,740,000

Accounts receivable = July sales × Percent uncollected = $1,740,000 × 70% = $1,218,000

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