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Victoria Inc. makes one product and it provided the following information to help prepare the master budget for its first four months of operations: a
Victoria Inc. makes one product and it provided the following information to help prepare the master budget for its first four months of operations:
a The budgeted selling price per unit is $ Budgeted unit sales for June, July, August, and September are and units, respectively. All sales are on credit.
b of credit sales are collected in the month of the sale and in the following month.
c The ending finished goods inventory equals of the following month's unit sales.
d The ending raw materials inventory equals of the following month's raw materials production needs. Each unit of finished goods requires of raw materials. The raw materials cost $ per kilogram.
e of raw materials purchases are paid for in the month of purchase and in the following month.
f The direct labour wage rate is $ per hour. Each unit of finished goods requires two direct labourhours.
g The variable selling and administrative expense per unit sold is $ The fixed selling and administrative expense per month is $
Required:
If of raw materials are needed for production in August, the cost of raw materials purchases in June is $ what are the estimated cash disbursements for raw materials purchases in July?
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