Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Foundational 15 [LO8-2, LO8-3, L08-4, L08-5, L08-7, LO8-9, L08-10) [The following information applies to the questions displayed below) Morganton Company makes one product and

image text in transcribed
image text in transcribed
image text in transcribed
The Foundational 15 [LO8-2, LO8-3, L08-4, L08-5, L08-7, LO8-9, L08-10) [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 $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 $2.50 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 $160. The fixed selling and administrative expense per month is $65.000 Foundational 8-3 3. What is the accounts receivable balance at the end of July? Accounts receivable Zolezzi Inc. is preparing its cash budget for March. The budgeted beginning cash balance is $21,000. Budgeted cash receipts total $112,000 and budgeted cash disbursements total $91,000. The desired ending cash balance is $55,000. The company can borrow up to $90,000 at any time from a local bank, with interest not due until the following month Required: Prepare the company's cash budget for March in good form. Make sure to indicate what borrowing, if any, would be needed to attain the desired ending cash balance. Beginning cash balance Add cash receipts Total cash available Less cash disbursements Excess (deficiency) of cash available over disbursements Borrowings Ending cash balance Creger Corporation, which makes landing gears, has provided the following data for a recent month: Budgeted production Standard machine-hours per gear Budgeted supplies cost Actual production Actual machine-hours Actual supplies cost (total) 2,200 tears 5.7 machine-hours $ 6.30 per machine-hour 1,300 gears 8,100 machine-hours $49,722 Required: Determine the rate and efficiency variances for the variable overhead item supplies, (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (ie, zero variance). Input all amounts as positive values.) Variable overhead rate variance Variable overhead efficiency variance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Internal Auditing A Guide For The New Auditor

Authors: David Galloway

3rd Edition

0894136917, 9780894136917

More Books

Students also viewed these Accounting questions

Question

- . . . - . . .

Answered: 1 week ago