Required information [The following information applies to the questions displayed below.] Morganton Company makes one product, and has provided the following information to help prepare the master budget for its first four months of operations: a. The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 8,200, 12,000, 14,000, and 15,000 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 kilograms of raw materials. The raw materials cost $2.00 per kilogram. e. Twenty percent of raw materials purchases are paid for in the month of purchase and 80% in the following month. f. The direct labour wage rate is $13 per hour. Each unit of finished goods requires two direct labour-hours. g. The variable selling and administrative expense per unit sold is $1.30. The fixed selling and administrative expense per month is $62,000. 12. What is the estimated finished goods inventory balance at the end of July? (Round intermediate calculations to 2 decimal places.) Ending finished goods inventory $ 124,800 x 13. What is the estimated cost of goods sold and gross margin for July? (Round intermediate calculations to 2 decimal places.) $ Estimated cost of goods sold Estimated gross margin 426,400 X 106,600 X $ 14. What is the estimated total selling and administrative expense for July? Total selling and administrative expenses $ 72,660 15. What is the estimated operating income for July? Operating income $ 33,940