Required information Required:

What are the budgeted sales for July?

What are the expected cash collections for July?

What is the accounts receivable balance at the end of July?

What is the estimated production in units for July?

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? If $61,000$ pounds of raw materials are needed to meet production in August, what is the estimated cost of raw materials purchases

for July?

In July what are the total estimated cash disbursements for raw materials purchases? Assume the cost of raw material purchases in

June is $$88,880$; and $61,000$ pounds of raw materials are needed to meet production in August.

If $61,000$ pounds of raw materials are needed to meet production in August, what is the estimated accounts payable balance at the

end of July?

If $61,000$ pounds of raw materials are needed to meet production in August, what is the estimated raw materials inventory balance

at the end of July?

Raw material inventory balance

What is the total estimated direct labor cost for July?

Total direct labor cost

If we assume there is no fixed manufacturing overhead and the variable manufacturing overhead is $$10$ per direct labor$-$hour, what

is the estimated unit product cost?

Unit product cost

If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $$10$ per direct labor$-$hour,

what is the estimated finished goods inventory balance at the end of July?

Ending finished goods inventory

If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $$10$ 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?

Total selling and administrative expenses

If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $$10$ per direct labor$-$hour.

what is the estimated net operating income for July?

Net operating income

$[$The following information applies to the questions displayed below.$]$

Morganton Company makes one product and provided the following information to help prepare its master budget:

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:

What are the budgeted sales for July?