anton Company makes one product and it provi ving information to help prepare the master bud e budgeted selling price per unit is $65. Budget ne, July, August, and September are 9,000, 21,0 ,000 units, respectively. All sales are on credit. irty percent of credit sales are collected in the m d 70% in the following month. e ending finished goods inventory.equals 30%
anton Company makes one product and it provi ving information to help prepare the master bud e budgeted selling price per unit is $65. Budget ne, July, August, and September are 9,000, 21,0 ,000 units, respectively. All sales are on credit. irty percent of credit sales are collected in the m d 70% in the following month. e ending finished goods inventory.equals 30%
Chapter7: Budgeting
Section: Chapter Questions
Problem 3PB: TIB makes custom guitars and prepared the following sales budget for the second quarter It also has...
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Question
![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 9,000, 21,000, 23,000, and
24,000 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
$2.70 per pound.
e. Twenty percent of raw materials purchases are paid for in the
month of purchase and 80% in the following month.
f. The direct labor wage rate is $14 per hour. Each unit of finished
goods requires two direct labor-hours.
g. The variable selling and administrative expense per unit sold is
$1.60. The fixed selling and administrative expense per month is
$60,000.
8. If 116,500 pounds of raw materials are needed to meet production in August, what is
the estimated accounts payable balance at the end of July?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F34496cef-5563-40c5-9778-ec4dbcf8a96a%2F6e998491-01d8-4a1b-91be-eeff9421cea0%2Fpz8v5a_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 9,000, 21,000, 23,000, and
24,000 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
$2.70 per pound.
e. Twenty percent of raw materials purchases are paid for in the
month of purchase and 80% in the following month.
f. The direct labor wage rate is $14 per hour. Each unit of finished
goods requires two direct labor-hours.
g. The variable selling and administrative expense per unit sold is
$1.60. The fixed selling and administrative expense per month is
$60,000.
8. If 116,500 pounds of raw materials are needed to meet production in August, what is
the estimated accounts payable balance at the end of July?
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