Morganton Company makes one product and it provided the following information to
ID: 2510331 • Letter: M
Question
Morganton Company makes one product and it provided the following information to help prepare the master budget for its first 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.
Thirty percent of credit sales are collected in the month of the sale and 70% in the following month.
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.
Twenty percent of raw materials purchases are paid for in the month of purchase and 80% in the following month.
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?
What is the estimated cost of raw materials purchases for July?
If the cost of raw material purchases in June is $99,275, what are the estimated cash disbursements for raw materials purchases in July?
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?
If the company always uses an estimated predetermined plantwide overhead rate of $7 per direct labor-hour, what is the estimated unit product cost? (Round your answer to 2 decimal places.)
What is the estimated finished goods inventory balance at the end of July, if the company always uses an estimated predetermined plantwide overhead rate of $7 per direct labor-hour?
What is the estimated cost of goods sold and gross margin for July, if the company always uses an estimated predetermined plantwide overhead rate of $7 per direct labor-hour?
What is the estimated net operating income for July, if the company always uses an estimated predetermined plantwide overhead rate of $7 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:
Explanation / Answer
1. Prepartion of Sales Budget Particular July Sales Unit 11,000 Selling Price/Unit $60 Budgeted Sales Value $660,000 2. Schedule of Expected Cash Collection Particular July June Sales( 8000*$60*70%) $336,000 July Sales ($660000*30%) $198,000 Total Cash Collection $534,000 3. Schedule Showing Account receivable bal at the end of July Particular July July Sales ($660000*70%) $462,000 Total Cash Collection $462,000 Schedule of Production Budget Particular July Sales Unit in July $11,000.00 Less Ending Inventory (13000*25%) $3,250.00 Total Needs $14,250.00 Less: Beginning Inventory (11000*25%) $2,750.00 Production Unit $11,500.00 Note : As per Chegg Policy, only 4 part can be solved
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