Transcribed Image Text: … 近 RequIred Informatlon [The following information applies to the questions displayed below.] Morganton Company makes one product and it provided the following information to prepare the

Transcribed Image Text: …

RequIred Informatlon
[The following information applies to the questions displayed below.]
Morganton Company makes one product and it provided the following information to prepare the master budget
a. The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 8,300,
14,000, 16,000, and 17,000 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 25% 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 reguires5 pounds of raw materials. The raw materials cost $2.00 per pound.
e. Forty percent of raw materials purchases are paid for in the month of purchase and 60% in the following month.
f. The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours.
9. The variable selling and administrative expense per unit sold is $1.50. The fixed selling and administrative expense per
month is $64,000.
7. In July what are the total estimated cash disbursements for raw materials purchases? ASsume the cost of raw material purchases in
June is $102.025; and 81,250 pounds of raw materials are needed to meet production in August.
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