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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
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 September are 9300, 24,000, 26,000, and 27,000 units, respectively. All sales are on credit.
B. 40% of credit sales are collected in the month of the sale in 60% in the following month.
C. The ending finished goods inventory equals 30% of the following months unit sales.
D. The ending Royal materials inventory equals 20% of the following months from materials produced production needs. Each unit of finished goods requires 4 pounds of raw materials. The raw materials cost $2.50 per pound.
E. 30% of all materials purchases are paid for in the month of purchase and 70% in the following month.
F. The direct labor wage rate is $14 per hour. Each unit of finished goods requires to 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 $63,000.
5) if 105,200 pounds of raw materials are needed to meet production in August, how many pounds of raw materials should be purchased in July?
6) if 105,200 pounds of raw materials are needed to meet production in August, what is the estimated cost of raw materials purchased for July?
7) in July what are the total estimated cash disbursements from materials purchased? Assume the cost of prominent cereal purchased in June is $158,880; and 105,200 pounds of raw materials are needed to meet production in August.
8) if 105,200 pounds of raw materials are needed to meet production in August, what is the estimated accounts payable balance at the end of July?
9) if 105,200 pounds of raw materials are needed to meet production in August, what is the estimated from 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 we assume that there is no fixed manufacturing overhead in the variable manufacturing overhead is nine dollars per direct labor hour, what is the estimated unit product cost?
12) if we assume that there is no fixed manufacturing overhead in the bearable manufacturing overhead is nine dollars 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 in the variable manufacturing overhead is nine dollars per direct labor hour, 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) if we assume that there is no fixed manufacturing overhead in the variable manufacturing overhead is nine dollars per direct labor hour, what is the estimated net operating income for July?
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