omework Help Save & Exit Check n Required information The following information

Question

omework Help Save & Exit Check n Required information The following information applies to the questions displayed below Morganton Company makes one product and it provided the following information to help prepare the mester 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 n entory equals 20% ofhefolowing month!ntsee. month's raw materials production needs Each unit of finished goods requires 5 pounds of rew meteriels. The raw materials e. Thirty percent of raw materials purchases are peid for in the month of purchase and 70% in f. The direct labor wage rate is $15 per hour. Each unit of finished g. The variable selling and administrative expense cost $2.00 per pound the following month. goods requires two direct lebor-hours per unit sold is $180 The fixed selling and administrative expense per month is $60,000. 9 What is the estimated raw materisls inventory balance at the end of July C Prev 10 15 24 Next

Explanation / Answer

Finished goods to be produced June July August Beginning inventory 0 2000 2400 (10000*20%) (12000*20%) Add:Buudgeted sales units 8400 10000 12000 8400 12000 14400 Less: Ending inventory 2000 2400 2600 (10000*20%) (12000*20%) (13000*20%) Units to be produced 6400 9600 11800 Raw material requirement June July August Units to be produced 6400 9600 11800 Raw material required in pound 5 5 5 Total raw material required 32000 48000 59000 Ending raw material inventory for July=10% of August month production needs=59000*10%=$ 5900

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.