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

Morganton Company makes one product and it provided the following information to help prepare the master budget for its first four months of operations: The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 8,900, 20,000, 22,000, and 23,000 units, respectively. All sales are on credit. 40% of credit sales are collected in the month of the sale and 60% in the following month. The ending finished goods inventory equals 20% of the following months unit sales. 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 $2.50 per pound. 30% of raw materials purchases are paid for in the month of purchase and 70% in the following month. The direct labour wage rate is $13 per hour. Each unit of finished goods requires two direct labour-hours. The variable selling and administrative expense per unit sold is $1.50. The fixed selling and administrative expense per month is $70,000. Required: According to the production budget, how many units should be produced in July?

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