SB CH8 #10

Chapter 8 Mastery 0 Saved Help Saves: Exit Submit m 10 Required information Part10 of16 {The foitowittg information appties to the questions dismayed bellow] Morganton Company makes one product and it provided the following information to help prepare the master budget: points a. 'he 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, g respectively. All sales are on credit. eBook b. 'hirty percent ofcredit sales are collected in the month oithe sale and ?0% in the following month. E! c. "he ending finished goods inventory equals 30% ofthe following month's unit . sales. Pnnt d. 'he ending raw materials inventory equals 2 '36 of the following month's raw materials production needs. Each unit offinished goods requires 5 pounds of E raw materials. The raw materials cost $2.?0 per pound. REfEiEMEE e. 'wenty percent of raw materials purchases are paid for in the month of purchase and 80% in the following month. 1'. 'he direct labor wage rate is $14 per hour. Each unit of finished goods requires two direct labor-hours. g. "he variable selling and administrative expense per unit sold is $1.60. The fixed selling and administrative expense per month is $60000. 10. What is the total estimated direct labor cost for July?