iversit https/ omework Saved Help Save & Exit Check m The following information

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iversit https/ omework Saved Help Save & Exit Check m The following information applies to the questions displayed belowJ 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 8.400 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 materais inventory equals 10% of the following month's rewmater als production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.00 per pound e. Thirty f. The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours. g. The variable selling and administrative expense per unit sold is $1.80. The fixed selling and administrative expense per percent of raw materials purchases are paid for in the month of purchase and 70% in the following month. month is $60,000 13. What is the estimated cost of goods sold and gross margin for July? Estimated cost of goods sold Estimated gross margin 0 search

Explanation / Answer

Solution 13:

Computation of Unit Product Cost Particulars Amount Direct material (5*$2) $10.00 Direct labor (2*$15) $30.00 Unit Product Cost $40.00

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