## Required Information[The following information applies to the questions displayed below.]Morganton Company makes one product and provides 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.---5. If 116,500 pounds of raw materials are needed to meet production in August, how many pounds of raw materials should be purchased in July?

Name: ## Required Information[The following information applies to the ques
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: ## Required Information[The following information applies to the questions displayed below.]Morganton Company makes one product and provides the following information to help prepare the master budget:a. The budgeted selling price per unit is $65. B

Answered: Image /qna-images/answer/2bca58e5-e202-46eb-b6dd-c8c81236a74d.jpg

Answered: 5. If 116,500 pounds of raw materials…

Business

Accounting

5. If 116,500 pounds of raw materials are needed to meet production in August, how many pounds of raw materials should be purchased in July?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Shredder Manufacturing has the following projected unit sales (at $18 per unit) for four months of operations: Month Unit Sales January 60,000 February 72,000 March 76,800 April 84,000 Twenty-five percent of the customers are expected to pay in the month of sale and take a 3 percent discount; 70 percent of the customers are expected to pay in the month following sale. The remaining 5 percent will never pay. It takes two pounds of raw material (costing $0.75 per pound) to produce a unit of product. In January, no raw material is in beginning inventories, but management wants to end each month with enough material for 20 percent of the next month’s production. (April’s production is assumed to be 81,600 units.) Shredder Manufacturing pays for 60 percent of its material purchases in the month of purchase and 40 percent in the following month. Each unit of product requires 0.5 hours of labor time. Labor is paid $15 per hour and is paid in the same month as worked. Overhead is…
The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: Units to be produced 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 12,000 15,000 14,000 13,000 In addition, 15,000 grams of raw materials inventory is on hand at the start of the 1st Quarter and the beginning accounts payable for the 1st Quarter is $6,200. Each unit requires 5 grams of raw material that costs $1.80 per gram. Management desires to end each quarter with an inventory of raw materials equal to 25% of the following quarter's production needs. The desired ending inventory for the 4th Quarter is 5,000 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.40 direct labor-hours and direct laborers are paid $13.50 per hour. Required: 1. and 2. Calculate the estimated grams of raw material that need to be purchased and the cost of raw material…
Assume a company’s estimated sales for January, February, and March are 36,000 units, 37,000 units, and 35,000 units, respectively. The company always maintains ending finished goods inventory equal to 15% of next month’s unit sales. What is the required production in units for January?
Anticipated unit sales are January, 5,000, February, 4,000, and March 8,000 Finished goods are consistently maintained at 80% of the following month's sales If units cost $10 each to produce, how much is February's total cost of production? a) $0 b) $40,000 c) $72000 d) $80 000 e) None of these
LA Company, which plans to sell 200,000 units of finished product in July, anticipates a growth rate in sales of 5% per month. The desired monthly ending inventory in units of finished product is 80% of the next month's estimated sales. There are 150,000 finished units in inventory on June 30. Each unit of finished product requires 4 pounds of direct materials at a cost of P1.20 per pound. There are 800,000 pounds of direct materials in inventory on June 30. Assume LA Company plans to produce 600,000 units of finished product in the 3-month period ending September 30, and to have direct materials inventory on hand at the end of the 3-month period equal to 25% of the use in that period. The estimated cost of direct materials purchases for the 3-month period ending September 30 is
Total cost and number of units in the first seven months of 2020 are given below. According to this information, which of the following is the total cost in August if the company produces 470 units? Periods Total Cost No.of Units January 300 30,600 February 31,120 310 March 31,900 325 April 350 33,200 Мay 380 34,760 June 410 36,320 July 37,360 430 Select one: a. 41,550 O b. 48,000 c. 43,650 d. 39,440
Parwin Corporation plans to sell 34.000 units during August. If the company has 13.500 units on hand at the start of the month, and plans to have 14.500 units on hand at the end of the month, how many units must be produced during the month? Multiple Choice 47,500 33,000 48.500 35.000
The production manager of Rordan Corporation prepared the following quarterly production forecast for next year: Units to be produced 1st Quarter 10,200 2nd Quarter 3rd Quarter 4th Quarter 7,500 8,100 10,400 Each unit requires 0.45 direct labor-hour, and direct laborers are paid $14.00 per hour. Required: 1. Prepare a direct labor budget for next year. Note: Round "Direct labor time per unit (hours)" answers to 2 decimal places. Direct labor time per unit (hours) Total direct labor-hours needed Direct labor cost per hour Total direct labor cost Rordan Corporation Direct Labor Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year
Ultravision Incorporated anticipates sales of $370,000 from January through April. Materials will represent 50 percent of sales, and because of level production, material purchases will be equal for each month during the four months of January, February, March, and April. Materials are paid for one month after the month purchased. Materials purchased in December of last year were $33,000 (half of $66,000 in sales). Labor costs for each of the four months are slightly different due to a provision in the labor contract in which bonuses are paid in February and April. The labor figures are: January February March April $ 23,000 26,000 23,000 28,000 Fixed overhead is $19,000 per month. Prepare a schedule of cash payments for January through April. Note: Assume the $370,000 of sales occur equally over the four months of January through April, i.e. Monthly sales = $370,000 4. Input your answer as positive a value. Monthly material purchase Payment to material purchases Monthly labor cost…
29) Sales for December are expected to be 36,000 units and Production is expected to be 37,000 units. You pay your Direct Labor workers $24 per hour and each unit requires 2 hours of labor and 3 hours of machine time. Overhead costs are $5 per hour of which $1 per hour is depreciation. What will be your direct labor costs for the month of December?
Ultravision Inc. anticipates sales of $420,000 from January through April. Materials will represent 50 percent of sales, and because of level production, material purchases will be equal for each month during the four months of January, February, March, and April. Materials are paid for one month after the month purchased. Materials purchased in December of last year were $38,000 (half of $76,000 in sales). Labor costs for each of the four months are slightly different due to a provision in the labor contract in which bonuses are paid in February and April. The labor figures are: January February March April $28,000 31,000 28,000 33,000 Fixed overhead is $24,000 per month. Prepare a schedule of cash payments for January through April. (Assume the $420,000 of sales occur equally over the four months of January through April, i.e. Monthly sales = $420,000 / 4.) Ultravision Inc. Cash Payment Schedule December January February March April Monthly material purchase Payment to material…
Ultravision Incorporated anticipates sales of $270,000 from January through April. Materials will represent 50 percent of sales, and because of level production, material purchases will be equal for each month during the four months of January, February, March, and April. Materials are paid for one month after the month purchased. Materials purchased in December of last year were $23,000 (half of $46,000 in sales). Labor costs for each of the four months are slightly different due to a provision in the labor contract in which bonuses are paid in February and April. The labor figures are: January $ 13,000 February 16,000 March 13,000 April 18,000 Fixed overhead is $9,000 per month. Prepare a schedule of cash payments for January through April.