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

• The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 9,000, 21,000, 23,000, and 24,000 units, respectively. All sales are on credit.
• Thirty percent of credit sales are collected in the month of the sale and 70% in the following month.
• The ending finished goods inventory equals 30% of the following month's unit sales.
• 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 $2.70 per pound.
• Twenty percent of raw materials purchases are paid for in the month of purchase and 80% in the following month.
• The direct labor wage rate is $14 per hour. Each unit of finished goods requires two direct labor-hours.
• The variable selling and administrative expense per unit sold is $1.60. The fixed selling and administrative expense per month is $60,000.

7. In July what are the total estimated cash disbursements for raw materials purchases? Assume the cost of raw material purchases in June is $194,400.

12. If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $8 per direct labor-hour, what is the estimated finished goods inventory balance at the end of July?

13. If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $8 per direct labor-hour, what is the estimated cost of goods sold and gross margin for July?

Estimated Cost of goods sold:

Estimated gross margin:

14. What is the estimated total selling and administrative expense for July?

Total Selling and administrative expenses:

15. If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $8 per direct labor-hour, what is the estimated net operating income for July?