lomework Help Seve & Exis Submit Required information The following information
ID: 2548920 • Letter: L
Question
lomework Help Seve & Exis Submit 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 master budget e. The budgesed seling 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 an credit b. Forty percent of credn sales are collected in the month of the sale and 60% in the following month e. The ending finshed goods inventory equals 20% of the folowing month s unit sales d. The ending raw masenal, inventory equals 10% of the following month s raw materials production needs. Each unit of nished goods requires 5 pounds of raw materials. The raw meterials cost $2.00 per pound. e. Thirty percent of raw materials purchases are peid for in the month of purchase and 70% in 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 variable selling and administretive expense per unit sold is $1.80. The fxed selling and administreive expense per month is $60 000 12. What is the estimated finished goods inventory balance et the end of July? Prev 12 13 14 15 of 24 Next >Explanation / Answer
12) Estimated ending finished goods inventory balance at the end of july
Estimated ending finished goods inventory = 12000*20% = 2400 units
Ending finished goods inventory balance = (5*2+15*2)*2400 = 96000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.