Morganton Company makes one product and it provided the following information to

help

prepare the master budget for its first 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\mathrm{.}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\mathrm{.}80.$ The fixed

selling and administrative expense per month is $$60,000.$

Required:

$1.$ What are the budgeted sales for July?

$2.$ What are the expected cash collections for July?

$3.$ What is the accounts receivable balance at the end of July?

$4.$ According to the production budget, how many units should be produced in July?

$5.$ If $61,000$ pounds of raw materials are needed to meet production in August, how many

pounds of raw materials should be purchased in July?

$6.$ What is the estimated cost of raw materials purchases for July?

$7.$ If the cost of raw material purchases in June is $$88,880,$ what are the estimated cash

disbursements for raw materials purchases in July?

$8.$ What is the estimated accounts payable balance at the end of July?

$9.$ What is the estimated raw materials inventory balance at the end of July?

$10.$ 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 forecasted number of

units produced?

$11.$ If the company always uses an estimated predetermined plantwide overhead rate of

$$10$ per direct labor$-$hour, what is the estimated unit product cost?

$12.$ What is the estimated finished goods inventory balance at the end of July?

$13$ What is the estimated cost of goods sold and gross margin for July?

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

$15.$ What is the estimated net operating income for July? Kindly Answer Questions $10-15$