Morganton Company makes one product and it provided the following information to help prepare the master budget:

1. The budgeted selling price per unit is $77. Budgeted sales units for June, July, August, and September are 9,000, 10,000, 11,000, and 12,000 respectively.

2. Forty percent of credit sales are collected in the month of the sale and 60% in the following month.

3. The ending finished goods inventory equals 20% of the following months unit sales.

4. The ending raw materials inventory equals 10% of the following months raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2 per pound.

5. Thirty percent of raw material purchases are paid for in the month of purchase of 70% in the following month.

6. The direct labor wage rate is $15. Each unit of finished goods requires two direct labor-hours.

7. The variable expense per unit is $1.80. The fixed selling and administrative expense is $60,000 of which $10,000 is depreciation expense.

Questions:

1. What is the estimated cost of raw materials purchases for July?

2. In July, what are the total estimated cash disbursements for raw material purchases if we assume the cost of raw material purchased in June is $93,000?

3. What is the estimated accounts payable balance at the end of July?

4. What is the estimated raw materials inventory balance at the end of July?

5. What is the total estimated direct labor cost for July assuming the direct labor workforce is adjusted to match the hours required to produce the forecasted number of units produced?