1) what are the budgeted sales for July? 2) what are the expected cash collectio
ID: 2742226 • Letter: 1
Question
1) what are the budgeted sales for July? 2) what are the expected cash collections for July? 3) what is the accounts recievable balance at the end of July? 4) according to the production budget how many units should be produced in July? 5) if 105,200 pounds of raw materials are needed to meet production in August, how many pounds of raw materials should be purchased In July? 6) what is the estimated cost of raw materials purchases for July? 7) if the cost of raw material purchases in June is $158,880, what are the estimated cash disbursements for raw materials in July? 8) what is the estimated accounts payable balance at the end of July? 9) what is the estimated raw materials inventory balance (in dollars) at the end of July? 10) what is the total estimated direct labor cost for July assuming the direct labor workforce is adjusted to match the hours required to produce the forecasted number of units produced? 11) if the compmay always uses an estimated predetermined plantwide overhead rate of $9 per direct labor-hour, what is the estimated unit product cost? (Round your answer to 2 decimal places). 12) what is the estimated finished goods Inventory balance at the end of July, if the compmay always uses an estimated predetermined plantwide overhead rate of $9 per direct labor hour? 13) what is the estimated cost of goods and gross margin for July, if the compmay always uses an estimated predetermined plantwide overhead rate of $9 per direct labor hour? 14) what is the estimated total and administrative expense for July? 15) what is he estimated net operating income for July, if the compmay always uses an estimated predetermined plantwide overhead rate of $9 per direct labor hour? 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 $65. Budgeted unit sales for June, July, August, and September are 9,300, 24,000, 26,000, and 27,000 units, respectively. All sales are on credit. b. Forty percent of credit sales are collected in the month of the c The ending finished goods inventory equals 30% of the following d The ending raw materials inventory equals 20% of the following sale and 60% in the following month month's unit sales. 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 t The direct labor wage rate is $14 per hour. Each unit of finished 9. The variable selling and administrative expense per unit sold is month of purchase and 70% in the following month. goods requires two direct labor-hours. $1.90. The fixed selling and administrative expense per month is $63,000.Explanation / Answer
1) Budgeted sales for july=24000*$65 =$1,560,000
2)Budgeted cash collections for july = (1560000*40%(july sales) +9300*65*60%( june sales)=624000+362700=986700.
3)Accounts recievable at the end of july =1560000*60% =$936000
4)the number of units that must be produced during july = 24000-opng inventory(24000*30%)+closing inventory (26000*30% =24600 units
5)105,200 pounds of raw materials are needed to meet production in August, the number of pounds of raw materials should be purchased In July=24600*4- opening stock(24600*4*20%)+105200*20% =98400-19680+21040= 99760 units
6)the estimated cost of raw materials purchases for July = 99760*2.5 =249400
7)if the cost of raw material purchases in June is $158,880, the estimated cash disbursements for raw materials in July is $158,800*30% =47640
8)the estimated accounts payable balance at the end of July = $158,800*70% =$111160
9)the estimated raw materials inventory balance (in dollars) at the end of July=105200*20%*4 =$84160
10)the total estimated direct labor cost for July assuming the direct labor workforce is adjusted to match the hours required to produce the forecasted number of units produced=24600*2hrs * $14/hr =$688,800
11) if the compmay always uses an estimated predetermined plantwide overhead rate of $9 per direct labor-hour, what is the estimated unit product cost = (4*2.5(raw materials)+ 2hrs* $14(labour)+2hrs*$9(0ver heads =$56
12)the estimated finished goods Inventory balance at the end of July, if the compmay always uses an estimated predetermined plantwide overhead rate of $9 per direct labor hour = 26000*30%*$56 per unit =$436,800
13)the estimated cost of goods and gross margin for July, if the compmay always uses an estimated predetermined plantwide overhead rate of $9 per direct labor hour = (24000*56)=$1,344,000(cost of goods sold) and gross margin = (24000*9)=$216,000
14)he estimated total and administrative expense for July = 24000*1.9+63000 =108600
15) he estimated net operating income for July, if the compmay always uses an estimated predetermined plantwide overhead rate of $9 per direct labor hour = gross margin - selling & administrative expenses = 216000-108600=$107400
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