Morganton Company makes one product and it provided the following information to
ID: 2552641 • Letter: M
Question
Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations:
The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 8,200, 12,000, 14,000, and 15,000 units, respectively. All sales are on credit.
The ending raw materials inventory equals 10% of the following month’s raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.00 per pound.
The direct labor wage rate is $13 per hour. Each unit of finished goods requires two direct labor-hours.
The variable selling and administrative expense per unit sold is $1.30. The fixed selling and administrative expense per month is $62,000.
Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations:
Explanation / Answer
The budgeted sales for July are $780,000
Unit sales 12,000 Selling price per unit × $65 Total sales $780,000Related Questions
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