Morganton Company makes one product and it provided the following information to help prepare the master...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 $65. Budgeted unit sales for June, July, August, and September are 8,700, 18,000, 20,000, and 21,000 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 30% of the following month's unit sales. d. The ending raw materials inventory equals 20% 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. e. Forty percent of raw materials purchases are paid for in the month of purchase and 60% 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 administrative expense per unit sold is $1.90. The fixed selling and administrative expense per month is $68,000. 7. In July what are the total estimated cash disbursements for raw materials purchases? Assume the cost of raw material purchases in June is $129,120; and $101,500 pounds of raw materials are needed to meet production in August. 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 $65. Budgeted unit sales for June, July, August, and September are 8,700, 18,000, 20,000, and 21,000 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 30% of the following month's unit sales. d. The ending raw materials inventory equals 20% 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. e. Forty percent of raw materials purchases are paid for in the month of purchase and 60% 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 administrative expense per unit sold is $1.90. The fixed selling and administrative expense per month is $68,000. 7. In July what are the total estimated cash disbursements for raw materials purchases? Assume the cost of raw material purchases in June is $129,120; and $101,500 pounds of raw materials are needed to meet production in August.
Expert Answer:
Answer rating: 100% (QA)
Okay lets solve this stepbystep Given information Budgeted unit sales for July 18000 units Raw m... View the full answer
Related Book For
Introduction to Managerial Accounting
ISBN: 978-0078025792
7th edition
Authors: Peter Brewer, Ray Garrison, Eric Noreen
Posted Date:
Students also viewed these accounting questions
-
Explain the sources of Dollar General's performance decline during the year that ended February 2, 2007
-
Q. The Cleveland Public Library has a main branch located downtown. Every day, a separate truck delivers book orders from the main branch to each of the five branches located throughout the...
-
Occurs when the subjects chosen for an experiment have very low or very high pretest scores. For example, in an experiment for weight loss, the persons chosen to go take a special diet pill were all...
-
Prudence Corporation manufactures two products: X and Y. The company has 4,000 hours of machine time available and can sell no more than 800 units of product X. Other pertinent data follow. Which of...
-
Assess the value and importance of the Internet contribution in setting e-marketing objectives in relation to other possible objectives.
-
This chapter has indicated that diversification of the LDCs export bundles so that they contain relatively more manufactured goods could potentially alleviate both the instability problem and the...
-
Cost of sales equals: a. Opening inventory plus purchases plus closing inventory b. Opening inventory less purchases plus closing inventory c. Closing inventory plus purchases less opening inventory...
-
Walkenhorst Companys machining department prepared its 2010 budget based on the following data: Practical capacity .............40,000 units Machine hours per unit .......... 2 Variable factory...
-
Shown below are the annual stock price returns of Monte Vista Inc. in Year 1 through Year 5. Period Actual Return Average Deviation Sq. Deviation 1 0.200 0.100 0.100 0.01000 2 0.150 0.100 0.050...
-
Future research for the class analytics where I learn about NBA with blocks, points, and win and lose.
-
Approach to change management. If the culture and individual behaviors are not considered during the change process, then the outcome may not follow the model. It is important for the leader to...
-
What is the hydronium-ion concentration of a solution that is formed by combining 600. mL of 0.10 M NaOH with 400. mL of 0.80 M HNO3 at 25C? 0.080 M 0.010 M 0.80 M 0.45 M 0.26 M
-
Assume = (0,1) and let A be the following language: A=(On110m | m>n+4}. (So A contains strings such as 1100000, 110000000, 01100000, etc.) Determine whether A is a regular language or not. Fully...
-
Which concept or topic covered in the course will be the most helpful as you continue your education? Why? Which concept or topic will be beneficial in your professional life? Why? How will this...
-
Using Smart Choice's Eight-Step process (see below), list the eight or so steps you should take for a large decision, personally or professionally that you will be making.
-
Lewis Corporation, a U.S. corporation, reported total taxable income of $6,280,000 in the current year. Taxable income included $1,884,000 of foreign source taxable income from the company's branch...
-
For liquid water the isothermal compressibility is given by; where r and b are functions of temperature only. If 1 kg of water is compressed isothermally and reversibly from I to 500 bar at 60(C. how...
-
How do teams work?
-
Task characteristics, reward systems, and team size are all ____________ that can make a difference in group effectiveness. (a) group processes (b) group dynamics (c) group inputs (d) human resource...
-
When a new team member is anxious about questions such as Will I be able to influence what takes place? the underlying issue is one of ____________. (a) relationships (b) goals (c) processes (d)...
Study smarter with the SolutionInn App