Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i need 1-4 answers Morganton Company makes one product and provided the following information to help prepare its master budget: a. The budgeted selling price

i need 1-4 answers
image text in transcribed
Morganton Company makes one product and provided the following information to help prepare its master budget: a. The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 8,400,10,000, 12,000 , and 13,000 units, respectively. All sales are on credit. b. Forty percent of eredit 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 fequires $ pounds of raw materials. The raw materials cost $2.00 per pound. e. Thirty percent of raw materials purchases are paid for in the month of purchase and 70% in the following month. f. The direct labor wage rate is $1$ per hour. Each unit of finished goods requires two direct labor-hours. 8. The variable selling and administrative expense per unit sold is $1.80. The fixed selling and administrative expense per month is $60,000. Required: For July: 1. What are the budgeted sales? 2. What are the expected cash collections? 3. What is the ending accounts receivable balance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Inventory

Authors: Steven M. Bragg

4th Edition

1642210714, 9781642210712

More Books

Students also viewed these Accounting questions