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Please help me answer this question Morganton Company makes one product and provided the following information to help prepare its master budget: The budgeted selling
Please help me answer this question
Morganton Company makes one product and provided the following information to help prepare its master budget:
- The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 8,600, 17,000, 19,000, and 20,000 units, respectively. All sales are on credit.
- Thirty percent of credit sales are collected in the month of the sale and 70% in the following month.
- The ending finished goods inventory equals 25% of the following months unit sales.
- 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.
- Thirty five percent of raw materials purchases are paid for in the month of purchase and 65% in the following month.
- The direct labor wage rate is $14 per hour. Each unit of finished goods requires two direct labor-hours.
- The variable selling and administrative expense per unit sold is $1.80. The fixed selling and administrative expense per month is $67,000.
Questions:
- If we assume there is no fixed manufacturing overhead and the variable manufacturing overhead is $6 per direct labor-hour, what is the estimated unit product cost?
- If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $6 per direct labor-hour, what is the estimated finished goods inventory balance at the end of July?
- If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $6 per direct labor-hour, what are the estimated cost of goods sold and gross margin for July?
- What is the estimated total selling and administrative expense for July?
- If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $6 per direct labor-hour, what is the estimated net operating income for July?
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