See the Foundational problem on pages 391 and 392 of the text. Use the information given in the text to answer questions 1 thru 8 except for:

1. Item a. should read budgeted sales for June, July, August, and September are 10,000, 12,000 14,000, and 13,000 respectively.
2. Question 5. should read if 69,000pounds of raw materials are needed to meet production in August, how many pounds of raw materials should be purchased in July?
3. Question 11. Should read if we assume that fixed manufacturing overhead costs are $62,000and variable manufacturing overhead is $10.00 per direct labor hour, what is the estimated unitcost?

Required:

Answer questions 1 through 8 on page 391 of the text.

a. c. Morganton Company makes one product and it provided the following information to help prepare the master budget: 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. 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 months raw materials pro- duction needs. Each unit of finished goods requires 5 pounds of raw materials. The raw mate- rials cost $2.00 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. The variable selling and administrative expense per unit sold is $1.80. The fixed selling and administrative expense per month is $60,000. Required: 1. What are the budgeted sales for July? 2. What are the expected cash collections for July? 3. What is the accounts receivable balance at the end of July? 4. According to the production budget, how many units should be produced in July? 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? 6. What is the estimated cost of raw materials purchases for July? 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. 8. What is the estimated accounts payable balance at the end of July? 9. What is the estimated raw materials inventory balance at the end of July? 10. What is the total estimated direct labor cost for July assuming the direct labor workforce is adjusted to match the hours required to produce the forecasted number of units produced? Chapter 8 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? 12. What is the estimated finished goods inventory balance at the end of July? 13. What is the estimated cost of goods sold and gross margin for July? 14. What is the estimated total selling and administrative expense for July? 15. What is the estimated net operating income for July