ework Help Save & Ex The following information applies to the questions displaye

Question

ework Help Save & Ex 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 a. The budgeted selling price per unit is $70. B udgeted 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 Forty percent of credit sales are collected n the month of the sale and 60% in the following month. The ending finished goods inventory equals 20% of the following month's unit sales. The ending raw materials nen ory equels10% of the following months raw materials production needs. Each unit of finished goods requires 5 pounds of row materials. The raw materials cost $2.00 per pound d e Thirty percent of raw materials purchases are ped for in the month of purchase and 70% in the folowing month f. The direct labor wege 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 month is $60,000. per 13. What is the estimated cost of goods sold and gross for Estimated cost of goods sold Estmated gross margin Syig Break 5 6 0

Explanation / Answer

12) Estimated cost of goods sold = (5*2+15*2)*12000 = 480000

Estimated gross margin = (12000*70)-480000 = 360000

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