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? Kindley Answer Questions $5-9$ ONLY