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Morganton Company makes one product and it provided the following information to help prepare the master budget Book Print a. The budgeted selling price per

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Morganton Company makes one product and it provided the following information to help prepare the master budget Book Print a. The budgeted selling price per unit is $65. Budgeted unit sales for June July August, and September are 8,700, 18,000, 20,000 and 21,000 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 30% of the following month's unit sales. d. 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 $2.00 per pound, e. Forty percent of raw materials purchases are paid for in the month of purchase and 60% in the following month f. The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours. 9. The variable selling and administrative expense per unit sold is $1.90. The fixed selling and administrative expense per month is $68,000 rences 7. In July what are the total estimated cash disbursements for raw materials purchases? Assume the cost of raw material purchases in June is $129,120; and $101,500 pounds of raw materials are needed to meet production in August Total cash disbursements Morganton Company makes one product and it provided the following information to help prepare the master budget 04 points Book Print 3. The budgeted selling price per unit is $65. Budgeted unit sales for June July August, and September are 8.700, 18,000, 20,000, and 21000 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 30% of the following month's unit sales d. 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 $2.00 per pound. e. Forty percent of raw materials purchases are paid for in the month of purchase and 60% in the following month. 1. The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor hours 9. The variable selling and administrative expense per unit sold is $1.90. The fixed selling and administrative expense per month is $68,000 References 6. If 101.500 pounds of raw materials are needed to meet production in August, what is the estimated cost of raw materials purchases for July Cost of raw materials to be purchased

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