M MHit Reader https:/ pter 8 Homework Help Sav The following information applies

Question

M MHit Reader https:/ pter 8 Homework Help Sav The following information applies to the questions displayed below Morganton Compeny makes one product and it provided the following information to help prepare the master budget Part 7 of 15 a The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 8.400 10,000, 12.000 and 13,000 units, respectively. All sales are on credit b Forty percent of credit sales are collected in the month of the sale and 60% in the following month. c The ending finished goods inventory equals 20% of the following month's unit sales d. The ending row mat ensis inventory equals s0% of the folowing months raw materials production needs. Each unit of firished goods requires 5 pounds of raw materials. The raw materials cost $2.00 per pound e. Thirty percent of rew materials pucheses are ped fr in the month of purchase and 70%in the following month. f. The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours g The variable seling and administrative expense per unit sold is $1.80. The fixed selling and administrative expense per month is $60 000 7·ln Jly what are the total estimated cash disbursements for raw materials purchases, Assume the cost of raw material purcheses une is $88 880 0

Explanation / Answer

Statement Showing Purchase made in July Month June July Aug Sep Unit Sales 8400 10000 12000 13000 Clsoing Stock of Inventory ( (20% of Following Month) 2000 2400 2600 0 Less: Opening Stock of Inventory 2000 2400 2600 Unit Produced during Month 10400 12200 Raw Material required for Production of Unit @5Pounds 52000 61000 Closing Stock of Raw Material (10% of Following Month) 5200 6100 Less: Opening Stock of Raw Material 5200 Raw material Purchase during the Month 5200 52900 61000 Statement Showing Cash Disbursement for Purchase in July Payment made for June 's Credit Purchases ($88880*70%) $62,216 Payment made for July's Credit Purchase ( 52900 Pound*$2*30%) $31,740 Total cash disbursement for Purchase in July $93,956

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