Required Information IThe tollowing information epplies to the questions display

Question

Required Information IThe tollowing information epplies to the questions displayed 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 velue d. 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 unts, respectvely All sales are on 10.00 points 12. What is the estimated finished goods inventory balance at the end of July, if the company always uses Forty percent of credit sales are collected in the month of the sale and 60%in the ollowing month an estimated predetermined plantwide overhead rate of $12 per direct labor-hour? 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 production needs Each unit of finished goods requires 4 pounds of raw matenals. 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% f The direct labor wage rate is $12 per hout. Each unit of finished goods requires two direct g. The variable selling and administrative expense per unit sold is $1.70. The fixed selling eBook & Resources in the following month labor-hours eBook Prepare a budgeted income statement and administrative expense per month is $61,000. ype here to search 7:36 PM m//20

Explanation / Answer

12) Calculate ending finished goods inventory value in july :

so answer is $278400

Direct material (4*2.50) 10 Direct labour (12*2) 24 Overhead (12*2) 24 Unit product cost 58 Ending inventory in july (24000*20%) 4800 Ending finished goods inventory value in july 278400

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