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 $70. Budgeted unit sales for June, July, August, and September are 8,400, 10,000, 12,000, and 13,000 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 20% of the following month?s unit sales. (d) The ending raw materials inventory equals 10% 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) Thirty-percent of raw materials purchases are paid for in the month of purchase and 70% 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 $1.80. The fixed selling and administrative expense per month is $60,000. What are the expected cash collections for July? 14 other parts to the question is attached. Morganton company makes one product and it provided the following informatio to help prepare the master budget for its first four months of operation a. the budget selling price per unit is $70. Budgeted unit sales for June, July, Auguts and september are 8,400, 10,000, 12,000 and 13,00 units respectively. All sales are on credit b. Forty percent of credit sales are collected in the month of sale and 60% in the following month c. the ending fonish goods inventory equals 20% of the following months unit sales d. the ending raw materials inventory equals 10% if the following months raw production needs each unit of finished goods require 5 pounds of raw materials. The raw materials cost 2$ per pound e. 30% of raw materials purchases are paid for the month of purchase and 70% in the following month f. the direct labor wage is $15 per hour. Each unit of finished goods require 2 labor direct labor hours g. The varible selling and administrative expense per unit sold is $1.80. The fixed slling and administrative expense per month is $60,000. What are budget sales for july 1 Unit sales Selling price per unit Total sales What are expected cash collections for July July 2. June sales July sales Total Cash collections What is the accounts recievable balance at end of July? 3 July sales Percent collected Accounts Receivable According to the production budget, how many units should be produced in july? July 4 Budgeted sales in units Add desired ending inventory Total needs Less beginning inventory Required production if 61,000 pounds of raw materials purchased are needed to meet production in August, how many pounds of raw materials should be purchased in July? 5. Required production in units Raw materials needed per unit Raw materials needed to meet production Add desired ending raw materials inventory Total raw materials needs Less beginning raw materials inventory Raw materials to be purchased what is the estimated cost of raw materials purchase in July? 6 Raw materials to be purchased (pounds) Cost per pound Cost of raw material purchases if the cost of the raw materials prurchases in June are $88,880, what are the extimated cash distbursements for raw materials purchased in July. July 7 June purchases July purchases Total cash disbursements What is the estimated accounts payable balance at the end of July? 8 July purchases Percent unpaid Accounts Payable What is the estimated raw materials inventory balance at the end of July? 9 Ending raw materials inventory (pounds) Cost per pound Raw material inventory balance 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 forcasted number of Units produced? July 10 Required production in units Direct labor hours per unit Total direct labor-hours needed Direct labor cost per hour Total direct labor cost If the company always uses an estimated predetermined plantwide overhead rate of $10 oer direct labor-hour, what is the estimated unit production cost? Quantity 11 Cost Per pound hour hour Direct materials Direct labor Manufacturing overhead Unit product cost What is the estimated finished goods inventory balance at the end of july 12 Ending finished goods inventory in units Unit product cost Ending finished goods inventory What is the estimated cost of goods sold and gross margin for july? 13 Unit sales Unit product cost Estimated cost of goods sold The estimated gross margin for July: Total sales Cost of goods sold Estimated Gross margin What is the estimated total selling and administrative expense for July? July 14 Budgeted unit sales Variable selling and administrative expense per unit Total variable expense Fixed selling and adminisrative expenses Total selling and administrative expenses What is the estimated net operating income for July? 15 Gross margin Selling and administrative expenses Net operating income Total 1. 2. 3