Morganton Company makes one product and it provided the following information to

Question

Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations:

(a)
The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 8,400, 10,000, 12,000, and 13,000 units, respectively. All sales are on credit.
(b) Forty-percent of credit sales are collected in the month of the sale and 60% in the following month.
(c) The ending finished goods inventory equals 20% of the following month

Explanation / Answer

July Unit sales 10,000 Selling price per unit $70 Total sales $700,000 June Unit Sales 8,400 Selling price per unit $70 Total sales $588,000 June sales $588,000(0.60) $352800 July sales $700,000 (0.40) $280,000 Add: (352800 +280,000)= 632,800 Total July Cash collections $632,800

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.