Morganton Company makes one product and it provided the following information to
ID: 2462583 • Letter: M
Question
Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations:
The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 8,800, 19,000, 21,000, and 22,000 units, respectively. All sales are on credit.
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 materials. The raw materials cost $2.40 per pound.
The direct labor wage rate is $12 per hour. Each unit of finished goods requires two direct labor-hours.
The variable selling and administrative expense per unit sold is $2.00. The fixed selling and administrative expense per month is $69,000.
What are the budgeted sales for July?
Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations:
The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 8,300, 14,000, 16,000, and 17,000 units, respectively. All sales are on credit.
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 materials. The raw materials cost $2.00 per pound.
The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours.
The variable selling and administrative expense per unit sold is $1.50. The fixed selling and administrative expense per month is $64,000.
What are the expected cash collections for July?
Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations:
The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 9,400, 25,000, 27,000, and 28,000 units, respectively. All sales are on credit.
The ending raw materials inventory equals 10% of the following 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.
The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours.
The variable selling and administrative expense per unit sold is $2.00. The fixed selling and administrative expense per month is $64,000.
Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations:
Explanation / Answer
a)Budgeted sales for july = 19000 * 70 = $1,330,000
b)Expected cash collection :
June sales = (8300*60*.60) = $298,800
July sales = (14000*60 *.40) = $ 336,000
Total cash collection =$ 634,800
c)July sales receivable = (25000*70 * .70 ) =$1,225,000
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