a$.$ The budgeted selling price per unit is $$70.$ Budgeted unit sales for June, July, August, and September are $9,100,22,000,24,000,$ and $25,000$ 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 $4$ pounds of raw materials. The raw materials cost $$2\mathrm{.}50$ 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 $$12$ per hour. Each unit of finished goods requires two direct labor$-$hours.

g$.$ The variable selling and administrative expense per unit sold is $$1\mathrm{.}70.$ The fixed selling and administrative expense per month is $$61,000.$

Foundational $8-8($Algo$)$

a$.$ The budgeted selling price per unit is $$70.$ Budgeted unit sales for June, July, August, and September are $9,100,22,000,24,000,$ and $25,000$ 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 $4$ pounds of raw materials. The raw materials cost $$2\mathrm{.}50$ 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 $$12$ per hour. Each unit of finished goods requires two direct labor$-$hours.

g$.$ The variable selling and administrative expense per unit sold is $$1\mathrm{.}70.$ The fixed selling and administrative expense per month is $$61,000.$

Foundational $8-7($Algo$)$

$7.$ In July what are the total estimated cash disbursements for raw materials purchases? Assume the cost of raw material purchases in June is $$127,520,$ and $$96,800$ pounds of raw materials are needed to meet production in August.

Total cash disbursements

$8.$ If $96,800$ pounds of raw materials are needed to meet production in August, what is the estimated accounts payable balance at the end of July?

$9.$ If $96,800$ pounds of raw materials are needed to meet production in August, what is the estimated raw materials inventory balance at the end of July?

$10.$What is the total estimated direct labor cost for July?

$11.$If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $$12$ per direct labor$-$hour, what is the estimated unit product cost? $($Round answer $2$ decimal places$)$

$12.$If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $$12$ per direct labor$-$hour, what is the estimated finished goods inventory balance at the end of July?

$13.$If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $$12$ per direct labor$-$hour, what is the estimated cost of goods sold and gross margin for July?

$[$Estimated cost of goods sold$]$:

$[$Estimated gross margin$]$

$14.$What is the estimated total selling and administrating expenses for July?

$15.$If

we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $$12$ per direct labor$-$hour, what is the estimated net operating income for July?