Reader Home l Chegg.com 3Assignments ACC 213 02+ Help Save & B ork Chec (The fol
ID: 2548106 • Letter: R
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Reader Home l Chegg.com 3Assignments ACC 213 02+ Help Save & B ork Chec (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 a. The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August and September are 8 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 e. The ending finished goods inventory equals 20% ofthe following month, unit sales d. The ending raw materials inventory equals 10% of the following month's raw materials production needs Each unit of requires 5 pounds of raw materials. The raw materials cost $2.00 per pound of raw materials purchases are paid for in the month of purchase and 70% in the following month finished goods e. Thirty percent t. The direct labor wage rete is $15 per hour. Each unit of finished goods requires two direct labor-hours 9 The variable selling and administrative expense per unit sold is $1.80. The fixed selling and administrative expense per month is $60,000. 4 According to the production budget how many units should be produced in July? Prev 5 24Next > #6Explanation / Answer
Required production in july = Sales in july+desired ending inventory in july-Beginning inventory in july
= 10000+(12000*20%)-(10000*20%)
Required production in july = 10400 units
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