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: a . The budgeted selling price per unit

Morganton Company makes one product and it provided the following information to help prepare the master budget:
a. The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and Sieptember are 8,700,18,000,20,000, and 21,000 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 30% of the following month's unit sales.
d. The ending raw materials inventory equals 20% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.00 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 $15 per hour. Each unit of finished goods requires two direct labor-hours.
g. The variable selling and administrative expense per unit sold is $1.90. The fixed selling and administrative expense per month is $68,000.
3. What is the accounts receivable balance at the end of July?
image text in transcribed

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_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

Fundamentals Of Financial Accounting St Louis Community College At Meramac

Authors: Phillips/Libby/Libby

3rd Edition

007745412X, 978-0077454128

More Books

Students also viewed these Accounting questions

Question

Have you made plans for the orientation process?

Answered: 1 week ago