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Morganton Company makes one product and it provided the following information to help prepare the master budget:

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.

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 30% of the following months unit sales.

The ending raw materials inventory equals 20% of the following months raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.00 per pound.

Forty percent of raw materials purchases are paid for in the month of purchase and 60% in the following month.

The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours.

The variable selling and administrative expense per unit sold is $1.90. The fixed selling and administrative expense per month is $68,000.

13.If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $8 per direct labor-hour, what is the estimated cost of goods sold and gross margin for July?

14. What is the estimated total selling and administrative expense for July?

15. If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $8 per direct labor-hour, what is the estimated net operating income for July?

16.

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Estimated cost of goods sold Estimated gross margin Which of the following statements is true? Multiple Choice Planning involves developing goals and preparing various budgets to achieve those goals. O Planning involves gathering feedback that enables organizations to make modifications as circumstances change. The definition of planning states that managers should be held responsible for those itemsand only those itemsthat the manager can actually control. Planning is usually done independent from the budgeting process