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[ The following information applies to the questions displayed below. ] Morganton Company makes one product and it provided the following information to help prepare

[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 $60. Budgeted unit sales for June, July, August, and September are
8,900,20,000,22,000, and 23,000 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 $2.50 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 $13 per hour. Each unit of finished goods requires two direct labor-hours.
g. The variable selling and administrative expense per unit sold is $1.50. The fixed selling and administrative
expense per month is $70,000.
According to the production budget, how many units should be produced in July?
If 111,000 pounds of raw materials are needed to meet production in August, how many
pounds of raw materials should be purchased in July?
If 111,000 pounds of raw materials are needed to meet production in August, what is the
estimated cost of raw materials purchases in July?
In July, what are the total estimated cash disbursements for raw materials purchases?
Assume the cost of raw material purchases in June is $150,600; and 111,000 pounds of raw
materials are needed to meet production in August.
If 111,000 pounds of raw materials are needed to meet production in August, what is the
estimated accounts payable balance at the end of July?
If 111,000 pounds of raw materials are needed to meet production in August, what is the
estimated raw materials inventory balance at the end of July?
What is the total estimated direct labor cost for July?
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