C Morganton Company Ma connect.mheducation.com/flow/connect.html y Twitter P Pan

Question

C Morganton Company Ma connect.mheducation.com/flow/connect.html y Twitter P Pandora Radio-Lis."-ESPN. The Worldwi a oooo ?Bank of America- " using the USB-C p M BL09 Dep ork Set Saved Help Save & Exit Su Check my w l I ne tollowing intormation applies to tne questions aisplayea Delow. Morganton Company makes one product and it provided the following information to help prepare the master budget a. The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 9,300, 24,000, 26,000, and 27,000 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 30% of the following month's unit sales. d. The ending raw materials inventory equals 20% of the following month's raw materials production needs. Each unit of finished goods requires 4 pounds of raw materials. The raw materials cost $2.50 e. Thirty percent of raw materials purchases are paid for in the month of purchase and 70% in the f. The direct labor wage rate is $14 per hour. Each unit of finished goods requires two direct labor- g. The variable selling and administrative expense per unit sold is $1.90. The fixed selling and per pound. following month. hours administrative expense per month is $63,000 What is the estimated total selling and administrative expense for July?

Explanation / Answer

Requirement 11 Estimated Unit Product Cost Direct Material per unit (4X2.5) 10.00 Direct labor per unit (2X14) 28.00 Variable Manufacturing overhead (2X9) 18.00 Total Product Cost 56.00 Requirement 12 Estimated Finished goods inventory balance at the end of July Units sales for the month of August          26,000 Percentage of Inventory on following month sales 30% Finished goods inventory balance            7,800 Requirement 13 Estimated Cost of goods of goods sold and gross margin for July Sales for the month of Jul (24000X65)    15,60,000 Less: Cost of goods Sold (24000X56) -13,44,000 Gross Margin      2,16,000 Requirement 14 Estimated total selling and administrative expesense for July Variable selling and administrative expesense (24000X1.90)          45,600 Fixed selling and administrative expesense          63,000 Estimated total selling and administrative expesense for July      1,08,600 Requirement 15 Estimated net operating income for July Gross margin      2,16,000 Less :Selling and administrative expesense for July     -1,08,600 Net operating income      1,07,400

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

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