Budgeting for Morganton Company's Single Product: Raw Material

Chapter 8 Mastery fl San-red Help Save 8: Exit Submit References Required information [The fottowing information appr'ies to the questions dismayed betovv] lvlorganton Company makes one product and it provided the following information to help prepare the master budget: 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, respectively. All sales are on credit. b. "hirty percent of credit sales are collected in the month otthe sale and 70% in the following month. c. "he ending finished goods inventory equals 30% ofthe following month's unit sales. d. "he ending raw materials inventory equals 20% of the following month's raver materials production needs. Each unit oftinished goods requires 5 pounds of raw materials. The raw materials cost $220 per pound. e. 'wenty percent of ravi.I materials purchases are paid for in the month of purchase and 80% in the following month. f. '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. 1 In July what are the total estimated cash disbursements for raw materials purchases? Assume the cost of raw material purchases in June is $104,400; and 116.500 pounds of raw materials are needed to meet production in August.