ACC SB NUMBER 6 ch8

ChapterB Mastery 0 Saved Help Sauna Exit Submit Check my WDI'II Required information Pan 6 cf '5 {The foiiowing Information applies to the questions displayed below] Morganton Company makes one product and it provided the following information to help prepare the master budget: points Skipped 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 of the sale and 70% in El the following month. Egogk 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 raw FEI materials production needs. Each unit offinished goods requires 5 pounds of raw materials. The raw materials cost $2.20 per pound. e. 'wenty percent of raw materials purchases are paid for in the month of E] purchase and 80% in the following month. References 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. 6. If 116,500 pounds of raw materials are needed to meet production in August, what is the estimated cost of raw materials purchases forJuly? Ill-'3 % < Eifl'it 6 7 8 15 of15 Next >