Required Information The tollowing information apples to the questions displayed

Question

Required Information The tollowing information apples to the questions displayed below Morgenton Company makes one product and it provided the following information to heip value 10.00 points prepare the master budget for Its first four months of operations 4 According to the production budget, how many units should be produced in July? units a. The budgeted selling pice per unit is $70 Budgeted unit sales for June, July, August, and September are 9,100, 22,000, 24,000, and 25,000 units, respecavely. All sales are on credit b. Forty percent or credit sales are collected in the month of the sa e and 60%in the following month c. The ending fhnished goods lnvertory equals 20% of the following month's unt sales d. The ending raw materials inventory equals 10% of the following month's raw materials eBook & Resources production needs. Each unlt of finished goods requires 4 pounds of raw materials. The rew materials cost $2.50 per pound. e. Forty percent of raw materials purchases are paid for in the month of purchase and 60% in the following month f. The direct labor wage rate is $12 per hour. Each unit of finished goods requires twa direct labor-hours The varieble selling and adminsstrative expense per unit sold is $170. The fxed selling and administrative expense per month is $61,000 7:27 PM /8/2018 3 e here to search

Explanation / Answer

a) Budgeted production in july = Sales units+Desired ending inventory unit-beginning inventory units

= 22000+(24000*20%)-(22000*20%)

Budgeted production in july = 22400 units

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

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