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