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Morganton Company makes one product, and has provided the following information to help prepare the master budget for its first four months of operations: The

Morganton Company makes one product, and has provided the following information to help prepare the master budget for its first four months of operations:

  1. The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 9,400, 25,000, 27,000, and 28,000 units, respectively. All sales are on credit.
  2. Thirty percent of credit sales are collected in the month of the sale and 70% in the following month.
  3. The ending finished goods inventory equals 20% of the following month's unit sales.
  4. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 4 kilograms of raw materials. The raw materials cost $2.50 per kilogram.
  5. Twenty percent of raw materials purchases are paid for in the month of purchase and 80% in the following month.
  6. The direct labour wage rate is $15 per hour. Each unit of finished goods requires two direct labour-hours.
  7. The variable selling and administrative expense per unit sold is $2.00. The fixed selling and administrative expense per month is $64,000.

If 108,800 kilograms of raw materials are needed to meet production in August, how many kilograms of raw materials should be purchased in July?

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