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

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.

Forty percent 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 month$$s unit sales.

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.

Thirty percent of raw materials purchases are paid for in the month of purchase and $70\%$ in the following month.

The direct labor wage rate is $$15$ per hour. Each unit of finished goods requires two direct labor$-$hours.

The variable selling and administrative expense per unit sold is $$1\mathrm{.}80.$ The fixed selling and administrative expense per month is $$60,000.$

The raw material purchases for July are computed as follows:

July

Required production in units of finished goods $($a$)10,400$

Units of raw materials needed per unit of finished goods $($b$)5$

Units of raw materials needed to meet production $($a$)\backslash$times $($b$)52,000$

Add desired units of ending raw materials inventory$*$Footnote asterisk $6,100$

Total units of raw materials needed $58,100$

Less units of beginning raw materials inventory$**$Footnote asterisk asterisk $5,200$

Units of raw materials to be purchased $52,900$

$*$Footnote asterisk$61,000$ pounds $\backslash$times $10\%=6,100$ pounds.

$**$Footnote asterisk asterisk$52,000$ pounds $\backslash$times $10\%=5,200$ pounds.

Where to get the $52000?$