Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I would appreciate the help! a. The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 8,600,17,000,19,000,
I would appreciate the help!
a. The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 8,600,17,000,19,000, and 20,000 units, respectively. All sales are on credit. b. Thirty percent of credit sales are collected in the month of the sale and 70% in the following month. c. The ending finished goods inventory equals 25% 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 5 pounds of raw materials. The raw materials cost $240 per pound. e. Thirty five percent of raw materials purchases are paid for in the month of purchase and 65% in the following month. f. The direct labor wage rate is $14 per hour. Each unit of finished goods requires two direct labor-hours. g. The variable selling and administrative expense per unit sold is $1.80. The fixed selling and administrative expense per month is $67,000. Foundational 8-8 (Algo) 8. If 96,250 pounds of raw materials are needed to meet production in August, what is the estimated accounts payable balance at the end of July? The Foundational 15 (AlgO) [LO8-2, LO8-3, LO8-4, LO8-5, LO8-7, LO8-9, LO8-10] [The following information applies to the questions displayed below.] Morganton Company makes one product and provided the following information to help prepare its master budget a. The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 8,600,17,000,19,000, and 20,000 units, respectively. All sales are on credit. b. Thirty percent of credit sales are collected in the month of the sale and 70% in the following month. c. The ending finished goods inventory equals 25% 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 5 pounds of raw materials. The raw materials cost $2.40 per pound. e. Thirty five percent of raw materials purchases are paid for in the month of purchase and 65% in the following month. f. The direct labor wage rate is $14 per hour. Each unit of finished goods requires two direct labor-hours. g. The variable selling and administrative expense per unit sold is $1.80. The fixed selling and administrative expense per month is $67,000. Foundational 8-3 (Algo) 3. What is the accounts receivable balance at the end of July? 13. If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $6 per direct labor-hour, what are the estimated cost of goods sold and gross margin for Julv? 11. If we assume there is no fixed manufacturing overhead and the variable manufacturing overhead is $6 per direct labor-hour, what is the estimated unit product cost? Note: Round your answer to 2 decimal places. 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 \$6 per direct labor-hour, what is the estimated net operating income for July? 12. If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $6 per direct labor-hour, what is the estimated finished goods inventory balance at the end of JulyStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started