Morganton Company makes one product and it provided the following information to
ID: 2462594 • 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 8,200, 13,000, 15,000, and 16,000 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 $2.50 per pound.
The direct labor wage rate is $14 per hour. Each unit of finished goods requires two direct labor-hours.
The variable selling and administrative expense per unit sold is $1.40. The fixed selling and administrative expense per month is $63,000.
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 8,000, 11,000, 13,000, and 14,000 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 $2.20 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 $1.20. The fixed selling and administrative expense per month is $61,000.
If 66,250 pounds of raw materials are needed to meet production in August, how many pounds of raw materials should be purchased in 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 8,600, 17,000, 19,000, and 20,000 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 $14 per hour. Each unit of finished goods requires two direct labor-hours.
The variable selling and administrative expense per unit sold is $1.80. The fixed selling and administrative expense per month is $67,000.
What is the estimated cost of raw materials purchases 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 9,500, 26,000, 28,000, and 29,000 units, respectively. All sales are on credit.
The ending raw materials inventory equals 15% of the following month’s raw materials production needs. Each unit of finished goods requires 4 pounds of raw materials. The raw materials cost $2.40 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 $1.50. The fixed selling and administrative expense per month is $65,000.
If the cost of raw materials purchases in June is $149,340, what are the estimated cash disbursements for raw materials purchases in 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 $65. Budgeted unit sales for June, July, August, and September are 9,600, 27,000, 29,000, and 30,000 units, respectively. All sales are on credit.
The ending raw materials inventory equals 20% 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 $13 per hour. Each unit of finished goods requires two direct labor-hours.
The variable selling and administrative expense per unit sold is $1.60. The fixed selling and administrative expense per month is $66,000.
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
Production budget for July
b)Raw materials to be purchased
(c)Cost of purchase for July = 66925 * 2.40 = $160,620
(d) Cash disbursement for raw materials purchased
Estiamted accounts payable at the end of july
= 160,620 @60% = $96,372
Sales units 13,000 Add: Ending inventory 3,000 total needs 16,000 less: opening inventory (13,000@20%) 2,600 Production requirements 13,400 unitsRelated Questions
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