Questions 1-15(of 17) The following information applies to the questions display

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Questions 1-15(of 17) 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 $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% or the following month's unt sales d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materals. The raw materials cost $2.00 per pound e. Thirty percent of raw materials purchases are paid for in the month of purchase and 70% in the following 1. The direct labor wage rate is $15 per hour Each unit of finished goods requires two direct labor-hours. 9. The variable selling and adminstrative expense per unit sold is $1.80. The fixed seliling and edministrative month. expense per month is $60.000 1. 10.00 points Required: 1. What are the budgeted sales for July? O Type here to seärch ! .@! hp

Explanation / Answer

Answer 5 & 6. Merchandise Production Budget July Sales In units                10,000 Add: Ending Inventory - 20%                  2,400 Total Needs                12,400 Less: Beginning Inventory - 20%                (2,000) Required Units Produced                10,400 Direct Material Budget July Required Units Produced                10,400 Raw Material required per Unit - in Pounds                     5.00 Total Raw Material Required                52,000 Add: Ending Inventory - 10% X 61,000 Pounds                  6,100 Total Needs                58,100 Less: Beginning Inventory - 10% X 52,000 Pounds                (5,200) Total Raw Material Purchased                52,900 Cost per Pound                     2.00 Cost of Raw Material Purchased              105,800 Answer 7. Expected cash Disbursement = $105,800 X 30% = $31,740 Answer 8. Accounts Payable Balance at the end of July = $105,800 X 70% = $74,060

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