Required information

The Foundational $15($Algo$)[$L$08-2,$ LO$8-3,$ LO$8-4,$ L$08-5,$ LO$8-7,$ L$08-9,$ LO$8-10]$

$[$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 $$65.$ Budgeted unit sales for June, July, August, and September are $8,400,$

$15,000,17,000,$ and $18,000$ units, respectively. All sales are on credit.

b$.$ Thirty percent of credit sales are collected in the month of the sale and $70\%$ 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 $5$ pounds of raw materials. The raw materials cost $$2\mathrm{.}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 $$12$ 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{.}60.$ The fixed selling and administrative expense per

month is $$65,000.$

Foundational $8-13($Algo$)$

If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $$7$ per direct labor$-$hour,

what are the estimated cost of goods sold and gross margin for July?

Estimated cost of goods sold

Estimated gross margin