MHE Reader C Chegg Study Guided Sokt C MTH 1221-WeEWorkMHA onnecthtm Help Save &
ID: 2548150 • Letter: M
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MHE Reader C Chegg Study Guided Sokt C MTH 1221-WeEWorkMHA onnecthtm Help Save & E Check 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 o. The budgeted selling price per unit is $70. Budgeted unit sales for June, July August and September are 8.400 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. c. The ending finished goods inventory equals 20% of the following month's unit sales. d. The ending raw materials inventory equals 10% of the following month's rew materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.00 per pound e. Thirty percent of raw materials purchases are ped for in the month of purchase and 70% n the following month. f. The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours g. The varieble selling and administretive expense per unit sold is $180 The fxed selling and administrative expense per 12. What is the estimated finished goods inventory balance at the end of July? 12 13 4 15 of 24 Next >Explanation / Answer
Estimated Ending Finished goods at end of July in units = 12000 * 0.2 = 2400 units
Cost per unit = (5*2) + (15*2) = $40
Estimated Ending Finished goods at end of July in amounts = 2400 * 40 = $96,000
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