Morganton Company makes one product and it provided the following information to
ID: 2541360 • Letter: M
Question
Morganton Company makes one product and it provided the following information to help prepare the master budget for its first four months of operations:
The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 9,200, 23,000, 25,000, and 26,000 units, respectively. All sales are on credit.
Thirty percent of credit sales are collected in the month of the sale and 70% in the following month.
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 materials. The raw materials cost $2.50 per pound.
Thirty percent of raw materials purchases are paid for in the month of purchase and 70% in the following month.
The direct labor wage rate is $13 per hour. Each unit of finished goods requires two direct labor-hours.
The variable selling and administrative expense per unit sold is $1.80. The fixed selling and administrative expense per month is $62,000.
What is the estimated raw materials inventory balance at the end of July?
If the company always uses an estimated predetermined plantwide overhead rate of $8 per direct labor-hour, what is the estimated unit product cost? (Round your answer to 2 decimal places.)
What is the estimated finished goods inventory balance at the end of July, if the company always uses an estimated predetermined plantwide overhead rate of $8 per direct labor-hour?
What is the estimated cost of goods sold and gross margin for July, if the company always uses an estimated predetermined plantwide overhead rate of $8 per direct labor-hour? Estimated COGS & Gross Margin.
What is the estimated net operating income for July, if the company always uses an estimated predetermined plantwide overhead rate of $8 per direct labor-hour?
Morganton Company makes one product and it provided the following information to help prepare the master budget for its first four months of operations:
Explanation / Answer
Master Budget
Total direct labour cost=88400*2*8=$1414400
Since the question involved huge calculations and multiple questions, i am unable to solve the question further. INCONVENIENCE IS REGRETTED.
Do give your feedback !! Happy Learning :)
June July August September Sales (in units) 9200 23000 25000 26000 Sales (in $)(units*$60) 552000 1380000 1500000 1560000 Collections: Same month 30% 165600 414000 450000 468000 Following month 70% 386400 966000 1050000 Closing finished goods (20% of unit sales) 1840 units 4600 units 5000 units 5200 units Pproduction: Sales 9200 23000 25000 26000 Add: closing stock 1840 4600 5000 5200 Less: opening stock 1840 4600 5000 PRODUCTION 11040 25760 25400 26200 Raw material requirement (4 pounds) 44160 103040 101600 104800 Raw Material Inventory (10% of following month) 10304 10160 10480 Raw material purchases (pounds*$2.5) 110400 257600 254000 262000 Payment 30% same mnth 33120 77280 76200 78600 70% following mnth 77280 180320 177800 Direct Labour Budget (2hrs) 11040*2=22080 25760*2=51520 25400*2=50800 26200*2=52400 Cost ($13 per hr) 287040 669760 660400 681200 Variable cost ($1.8 p.u sold) 16560 41400 45000 46800 Fixed cost 62000 62000 62000 62000Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.