Morganton Company makes one product, and has provided the following information to help prepare the master budget for its first four months of operations: a. The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 9,500, 26,000, 28,000, and 29,000 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 25% of the following month's unit sales. d. The ending raw materials inventory equals 15% of the following month's raw materials production needs. Each unit of finished goods requires 4 kilograms of raw materials. The raw materials cost $2.40 per kilogram. e. Forty percent of raw materials purchases are paid for in the month of purchase and 60% in the following month. f. The direct labour wage rate is $12 per hour. Each unit of finished goods requires two direct labour-hours. g. The variable selling and administrative expense per unit sold is $1.50. The fixed selling and administrative expense per month is $65,000. 2. What are the expected cash collections for July? Total cash collections 4. According to the production budget, how many units should be produced in July? Required production units Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the company's costs: Fixed Cost per Month Cost per Car Washed $0.90 0.30 0.50 0.60 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 3,400 6,700 10,300 4,100 3,800 0.08 The company expects to charge customers an average of $7.90 per car washed. Required: Prepare a flexible budget for October assuming either 11,500 or 12,500 cars are washed. AUTO LAVAGE INC. Flexible Budget For the Month Ended October 31 Budgeted Amoun Cars Washed Per Unit (per car) 11,500 12,500 Variable expenses: For the Month Ended October 31 Budgeted Amount Per Unit Cars Washed (per car) 11,500 12,500 Variable expenses: Total variable expenses 0.00 0 0 $ 0.00 0 0 Fixed expenses: Total fixed expenses 0 0 0 $ 0