60.1K

Verified Solution

Link Copied!

[The following information applies to the questions displayed below) Morganton Company makes one product, and has provided the following information to help prepare the master budget for its first four months of operations: a. The budgeted selling price per unit is $70. Budgeted unit sales for June July August, and September are 8,500. 16,000, 18,000, and 19,000 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 raw materials production needs. Each unit of finished goods requires 5 kilograms of raw materials. The raw materials cost $2.00 per kilogram. e. Thirty percent of raw materials purchases are paid for in the month of purchase and 70% in the following month. The direct labour wage rate is $13 per hour. Each unit of finished goods requires two direct labour-hours. g. The variable selling and administrative expense per unit sold is $170. The fixed selling and administrative expense per month is $66,000 Required: 1. What are the budgeted sales for July? Morganton Company makes one product, and has provided the following information to help prepare the master budget for its first four months of operations: a. The budgeted selling price per unit is $70 Budgeted unit sales for June, July, August, and September are 8,500. 16,000, 18,000, and 19,000 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 raw materials production needs. Each unit of finished goods requires 5 kilograms of raw materials. The raw materials cost $2.00 per kilogram. e. Thirty percent of raw materials purchases are paid for in the month of purchase and 70% in the following month The directiqbour wage rate is $13 per hour. Each unit of finished goods requires two direct labour-hours. g. The variable selling and administrative expense per unit sold is $170. The fixed selling and administrative expense per month is $66,000 2. What are the expected cash collections for July? Total cash collections Morganton Company makes one product, and has provided the following information to help prepare the master budget for its first four months of operations: a. The budgeted selling price per unit is $70. Budgeted unit sales for June July August, and September are 8,500, 16,000, 18,000, and 19.000 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 raw materials production needs. Each unit of finished goods requires 5 kilograms of raw materials. The raw materials cost $2.00 per kilogram. e. Thirty percent of raw materials purchases are paid for in the month of purchase and 70% in the following month. The direct labour wage rate is $13 per hour. Each unit of finished goods requires two direct labour-hours. g. The variable selling and administrative expense per unit sold is $170. The fixed selling and administrative expense per month is $66,000 4. According to the production budget, how many units should be produced in July? Required production units -- Morganton Company makes one product, and has provided the following information to help prepare the master budget for its first four months of operations: a. The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 8,500, 16,000, 18,000, and 19,000 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 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 raw materials production needs. Each unit of finished goods requires 5 kilograms of raw materials. The raw materials cost $2.00 per kilogram. e. Thirty percent of raw materials purchases are paid for in the month of purchase and 70% in the following month The direct labour wage rate is $13 per hour. Each unit of finished goods requires two direct labour-hours, 9. The variable selling and administrative expense per unit sold is $170. The fixed selling and administrative expense per month is $66,000 5.6 91,000 kilograms of raw materials are needed to meet production in August, how many kilograms of raw materials should be purchased in July? Raw materials to be purchased pounds Morganton Company makes one product, and has provided the following information to help prepare the master budget for its first four months of operations: a. The budgeted selling price per unit is $70. Budgeted unit sales for June July August, and September are 8,500. 16,000, 18,000, and 19,000 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 raw materials production needs. Each unit of finished goods requires 5 kilograms of raw materials. The raw materials cost $2.00 per kilogram e. Thirty percent of raw materials purchases are paid for in the month of purchase and 70% in the following month 1. The direct lobour wage rate is $13 per hour Each unit of finished goods requires two direct labour hours. 9. The variable selling and administrative expense per unit sold is $i 70. The fixed selling and administrative expense per month is $66,000 6. What is the estimated cost of raw materials purchases for July? Cost of raw materials to be purchased

Answer & Explanation Solved by verified expert

See Answer