1.Morganton Company makes one product and it provided the following information to help answer only for July:

1) Sales Budget and Cash Collection June July August September October Budgeted Sales units a 10,000 12,000 14,000 13,000 Selling price per unit b $ 70 $ 70 70 $ 70 Budgeted Sales Revenue c =a*b $ 7,00,000.00 $ 8,40,000.00 $ 9,80,000.00 $ 9,10,000.00 $ Cash Collection Opening balance d $ $ 40% of credit sale e=c*40% $ 2,80,000.00 $ 3,36,000.00 $ 3,92,000.00 $ 3,64,000.00 $ 60% of credit sale in next month f=c *60% $ $ 4,20,000.00 $ 5,04,000.00 $ 5,88,000.00 $ 5,46,000.00 Total Expected Cash collection g=d+e+f $ 2,80,000.00 $ 7,56,000.00 $ 8,96,000.00 $ 9,52,000.00 $ 5,46,000.00 2) Budgeted Cash payment June July August September October Budgeted Sales units a 10,000 12,000 14,00 3,000 Add: Closing stock of FG= 20% * Next month's sales b=a*20% 2,400 2,800 ,60 Less: Opening stock of FG 2,400 2,80 2,600 Budgeted Production units dza+b-c 12,400 12,400 13,800 10,400 Direct material consumption e=d$5 62,00 2,000 59,00 52,000 Closing stock= 10%*Next month's production f=b*10% 6,900 5,20 Opening stock g=f 6,200 6,90 5,200 Budgeted Purchase unit h=e+f-g 68,200 62,700 67,300 46,800 Budgeted Cost of Direct material purchase i=h*$2.00 $ 1,36,400.00 $ 1,25,400.00 $ 1,34,600.00 $ 93,600.00 $ Direct labour hour required j=d*2 24,800 24,800 27,600 20,800 Budgeted Cost of Direct labour k=j*$15 $ 3,72,000.00 $ 3,72,000.00 $ 4,14,000.00 $ 3,12,000.00 $ Variable manufacturing overhead 1=d*$0 Fixed manufacturing overhead m Budgeted Manufacturing overhead n=l+m $ $ $ Variable selling overhead o=a*$1.80 18,000 21,600 25,200 23,400 Fixed selling overhead P 52,000 62,000 52,000 62,000 62,000 Budgeted Selliing & adm overhead q=o+p S 80,000.00 S 83,600.00 $ 87,200.00 $ 85,400.00 $ 62,000.00 Total operating overhead r=k+n+q 4,52,000 4,55,600 5,01,200 3,97,400 62,000 Less: Depreciation S $ Operating overhead(other than material) tar-s S 4,52,000 $ 4,55,600 IS 5,01,200 $ 3,97,400 $ 62,000 Cash payment 20% of Direct material purchases uzi*20% $ 27,280 $ 25,080 $ 26,920 18,720 $ 70% of Direct material purchases in next month v=i*70% 5,480 87,780 94,220 $ 65,520 Payment for operating overhead w=t 4,52,000 $ 4,55,600 $ 5,01,200 $ 3,97,400 $ 62,000 Payment for account payable Total expected cash payment y=utv+w+x $ 4,79,280 $ 5,76,160 $ 6,15,900 $ 5,10,340 $ 1,27,520 3) Cash Budget June July August September October Opening balance a $ $ 1,79,840.00 $ 4,59,940.00 $ 9,01,600.00 Add: Cash collection $ 7,56,000.00 $ 8,96,000.00 $ 9,52,000.00 $ 5,46,000.00 Less: Cash payment C $ (5,76,160.00) $ (6,15,900.00) $ (5,10,340.00) $ (1,27,520.00) Preliminary Cash balance dza+b+c $ 1,79,840.00 $ 4,59,940.00 $ 9,01,600.00 $ 13,20,080.00 Add: Borrow $ S S Closing Cash balance 1,79,840 $ 4,59,940 $ 9,01,600 $ 13,20,080 3) Budgeted Income statement July August September Quarter total Budgeted Sales Revenue a 8,40,000.00 9,80,000.00 9,10,000.00 27,30,000.00 Budgeted Production units 12,400.00 13,800.00 10,400.00 36,600.00 Budgeted Cost of Direct material purchase b 1,25,400.00 1,34,600.00 93,600.00 3,53,600.00 Budgeted Cost of Direct labour 3,72,000.00 4,14,000.00 3,12,000.00 10,98,000.00 Budgeted Manufacturing overhead d Budgeted Cost of good sold e=b+c+d 4,97,400.00 5,48,600.00 4,05,600.00 14,51,600.00 Gross Margin f=a-e 3,42,600.00 4,31,400.00 5,04,400.00 12,78,400.00 Budgeted Selling & adm overhead g 83,600.00 87,200.00 35,400.00 2,56,200.00 Budgeted Income/(loss) h=f-g 2,59,000.00 3,44,200.00 4,19,000.00 10,22,200.00