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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: The
Victoria Inc. makes one product and it provided the following information to help prepare the master budget for its first four months of operations:
- The budgeted selling price per unit is $80. Budgeted unit sales for June, July, August, and September are 9,600, 10,600, 12,600, and 15,600 units, respectively. All sales are on credit.
- 60% of credit sales are collected in the month of the sale and 40% in the following month.
- The ending finished goods inventory equals 20% of the following months unit sales.
- The ending raw materials inventory equals 10% of the following months raw materials production needs. Each unit of finished goods requires 5 kg of raw materials. The raw materials cost $2.00 per kilogram.
- 30% of raw materials purchases are paid for in the month of purchase and 70% in the following month.
- The direct labour wage rate is $20 per hour. Each unit of finished goods requires two direct labour-hours.
- The variable selling and administrative expense per unit sold is $2.00. The fixed selling and administrative expense per month is $63,000.
What are the budgeted sales for July?
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