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Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations: (a) The

Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations: (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 months unit sales. (d) The ending raw materials inventory equals 20% of the following months 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. (g) The variable selling and administrative expense per unit sold is $1.90. The fixed selling and administrative expense per month is $68,000. According to the production budget, how many units should be produced in July?

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