Required information

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

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 $$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:

$1.$ What are the budgeted sales for July?

Budgeted Sales:

$2.$ What are the expected cash collections for July?

Total Cash Collections:

$3.$ What is the accounts receivable balance at the end of July?

Accounts Receivable:

$4.$ According to the production budget, how many units should be produced in July?

Required Production: $\_\_\_$ units

$5.$ 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?

Raw materials to be purchased:$\_\_\_$ pounds

$6.$ 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?

Cost of raw materials to be purchased:

$7.$ 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.

Total cash disbursements:

$8.$ 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?

Accounts Payable:

$9.$ 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:

$10.$ What is the total estimated direct labor cost for July?

Total direct labor cost:

$11.$ 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 unit product cost?

Unit product cost:

$12.$ 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:

$13.$ 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 cost of goods sold and gross margin for July?

Estimated cost of goods sold:

Estimated gross Margin:

$14.$ What is the estimated total selling and administrative expense for July?

Total selling and administrative expenses:

$15.$ 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: