Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help Morganton Company makes one product and it provided the following information to help prepare the master budget a. The budgeted selling price per

please help
image text in transcribed
Morganton Company makes one product and it provided the following information to help prepare the master budget a. The budgeted selling price per unit is $65. Budgeted unit sales for June July August, and September are 9,300, 24.000, 26,000, and 27,000 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 month's unit sales d. The ending raw materials inventory equals 20% of the following month's raw materials production needs. Each unit of finished goods requires 4 pounds of raw materials. The raw materials cost $2.50 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 $14 per hour. Each unit of finished goods requires two direct labor hours. 9. The varloble selling and administrative expense per unlt sold is $1.90. The fixed selling and administrative expense per month is $63,000. 2. What are the expected cash collections for July? Total cash collections

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Tools for Business Decision Making

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

5th Edition

9781118560952, 1118560957, 978-0470239803

More Books

Students also viewed these Accounting questions

Question

Were any of the authors students?

Answered: 1 week ago

Question

Review the determinants of direct financial compensation.

Answered: 1 week ago