O Not Secure ezto.mheducation.com/hm.tpx?-0.19211263779677945 15214819261 E conn

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O Not Secure ezto.mheducation.com/hm.tpx?-0.19211263779677945 15214819261 E connet ACCT 2122 (Spring 2018) WF Spring 2018 ACCOUNTING r8 Homework Questions 1-15 (of 15) The following information applies 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: a. The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 9,800, 29,000, 31,000, and 32000 units, respectively. All sales are on credit b. Thirty percent of credit sales are collected in the month of the sale and 70% in the following month. C. The ending finished d. The ending raw materials inventory equa goods inventory equals 20% of the following month's unit sales. is 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 e. month. t. The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours g. The variable selling and administrative expense per unit sold is $1.80. The fixed selling and administrative expense per month is $68,000. value 10.00 points Required 1. What are the budgeted sales for July? ANTHE 19

Explanation / Answer

7)

July Purchase : Prodcution requirement for july +ending Raw material -beginning RM

        =[29400*4]+[31200*4*10%]- [29400*4*10%]

            = 117600+ 12480-11760

             = 118320 units

Cost of purchase: 118320*2.5= 295800

Total cash disbursement for july : [152160*70%]June purchase+[295800*30%]july purchase

                = 106512+ 88740

                  = 195252

11)Unit product cost : Material +Labor + overhead

            =[4*2.5]+[15*2]+[7*2]

            = 10+ 30+ 14

             = $ 54 per unit

12)Ending Finished goods inventoryat july :august sales *%

              = 31000*.20

              = 6200

cost of finished goods : 6200*54 =$ 334800

13)Cost of goods sold :UNit sold *Unit cost

          = 29000*54

            = $ 1566000

Gross margin :sales -cost of goods sold

      =[29000*60] -1566000

      = 1740000-1566000

        = 174000

July August Unit sales 29000 31000 Ending Finished goods 6200   [31000*.20] 6400    [32000*.20] less:Beginning units (5800)    [29000*.20] (6200) Units produced 29400 31200

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