Question
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 $70. Budgeted unit sales for June, July, August, and September are 8,800, 19,000, 21,000, and 22,000 units, respectively. All sales are on credit. |
(b) | Thirty-percent of credit sales are collected in the month of the sale and 70% in the following month. |
(c) | The ending finished goods inventory equals 20% of the following months unit sales. |
(d) | The ending raw materials inventory equals 10% of the following months raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.40 per pound. |
(e) | Twenty five-percent of raw materials purchases are paid for in the month of purchase and 75% in the following month. |
(f) | The direct labor wage rate is $12 per hour. Each unit of finished goods requires two direct labor-hours. |
(g) | The variable selling and administrative expense per unit sold is $2.00. The fixed selling and administrative expense per month is $69,000. |
What are the budgeted sales for July?
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