$[$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:

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.

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.

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.

Thirty percent of raw materials purchases are paid for in the month of purchase and $70\%$ in the following month.

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 $$1\mathrm{.}80.$ The fixed selling and administrative expense per month is $$60,000.$

$1.$ Budgeted sales$-$ $$700,000$

$2.$ Total cash collections$-$ $$632,800$

$3.$ Accounts receivable at the end of July$-$ $$420,000$

$4.$ Required production units for July$-10,400$ units

$5.$ Raw materials to be purchased in July$-52,900$ pounds

$6.$ cost of raw materials to be purchased for July$-$ $$105,800$

$7.$ total estimated cash disbursements for raw materials purchases in July$-$ $$93,956$

$8.$ estimated accounts payable balance at the end of July$-$ $$74,060$

$9.$ estimated raw materials inventory balance at the end of July$-$ $$12,200$

$10.$ total estimated direct labor cost for July$-$ $$312,000$

$11.$ estimated unit product cost$-$ $$60$

$12.$ estimated finished goods inventory balance at the end of July$-$ $$144,000$

$13.$ estimated total selling and administrative expense for July$-$ $$78,000$

According to this information$-$

$14.$ 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?

$15.$ 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?