Homework Help Seve&Exitu; Chack my wa The following information applies to the q
ID: 2548203 • Letter: H
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Homework Help Seve&Exitu; Chack my wa The following information applies to the questions displayed below Morganton Company makes one product and t provided o. The budgeted seling orice per unit is $70 Budgeted the following informatsion to help prepare the master budget unit sales for June July, August, and September are 8.400 10000,12.000, and 13,000 units, respectively. All sales are on credit b. Forty percent of credn collected C The endingfinished goods inventory ecuais 20%ofthe following mom.unt..I d The ending raw materials inventory equals t0% of the following month s raw mater als production needs Each unt of tsales ore collected in the month of the sale and 60% in the blowing month. fnished goods requires 5 pounds of rew materials. The raw meterials cost $2.00 per pound e Thirty percent of raw meterials f. The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours 9 The veriable seling and edministrative expense per unit sold is $1.80. The fixed selling and adiministrative expense per month is $60,000 12. What is the estimated finished goods invetory balance et the end of July Prev 12 13 15 of24 Next> 0.Explanation / Answer
Ending finished goods inventory balance at the end of july :
Ending finished goods inventory balance = 12000*20% = 2400 unit
Ending finished goods inventory cost = (5*2+15*2)*2400 = 96000
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