s inforn value: 10.00 points Required Information 9. What is the estimated raw m
ID: 2514654 • Letter: S
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s inforn value: 10.00 points Required Information 9. What is the estimated raw materials inventory balance (in dollars) at the end of July? IThe following information applies to the questions displeyed below Morganton Company makes one product and it provided the following information to help prepare the master budget for Its first four months of operations: a. The budgeted selling price per unit is $70.Budgeted unit sales for June, July, August, and September are 9,100, 22,000, 24.000, and 25,000 units, respectively All sales are on credit eBook & Resources b Forty percent of credit sales are collected in the month of the sale and 60% in the lan following month c. The ending finished goods inventory equals 20% of the following month's unit sales d. The ending raw materials inventory equals 10% of the following month's raw materials ction needs. Each unit of finished goods requires 4 pounds of raw materia's The raw materials cost $2.50 per pound. e Forty percent of raw materials purchases are paid for in the month of purchase and 60% t. The direct labor wage rate is $12 per hour. Each unit of finished goods requires two direct g. The variable selling and administrative expense per unit sold is $1.70. The fxed selling eBook Prepare a sales budget inc luding a schedule of expected cash collect e in the following month abor-hours and administrative expense per month is $61000. t inform ? O Type here to searchExplanation / Answer
Solution 9:
Raw material requirement of august = 24200 * 4 = 96800 pound
Estimated ending raw material inventory for july = Production needs for august * 10% = 96800*10% = 9680 pound
Estimated raw material inventory balance for July (In dollars) = 9680 * $2.50 = $24,200
Production Budget Particulars July August Unit Sales 22000 24000 Desired Ending Inventory (20% of next month sale) 4800 5000 Total Needed 26800 29000 Less: Beginning Inventory 4400 4800 Budgeted Production units 22400 24200Related Questions
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