Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations: (a) The

Morganton Company makes one product and it provided the following information to help prepare the master budget for its 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 months unit sales.
(d)

The ending raw materials inventory equals 15% of the following months raw materials production needs. Each unit of finished goods requires 4 pounds of raw materials. The raw materials cost $2.40 per pound.

(e) Forty-percent of raw materials purchases are paid for in the month of purchase and 60% in the following month.
(f)

The direct labor wage rate is $12 per hour. Each unit of finished goods requires two direct labor-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.

What are the budgeted sales for July?
Budgeted sales $

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

Step: 3

blur-text-image

Ace Your Homework with AI

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

Get Started

Students also viewed these Accounting questions