LL %24 Requlred Informotlon The following information applies to the questions displayed below.] 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 $60. Budgeted unit sales for June, July, August, and September are 8,300, 14,000, 16,000, and 17,000 units, respectively. All sales are on credit. b. Forty percent of credit sales are collected in the month of the sale and 60% in the following month. c. The ending finished goods inventory equals 25% of the following month's unit sales. d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.00 per pound. e. Forty percent of raw materials purchases are paid for in the month of purchase and 60% in the following month. The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours. g. The variable selling and administrative expense per unit sold is $1.50. The fixed selling and administrative expense per 000 !ivo 13. If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $6 per direct labor-hour, what is the estimated cost of goods sold and gross margin for July? Estimated cost of goods sold! < Prev 14 15 of 15 Next > nere to search 近 F4 F5 F7 F8 いゴ & 23
LL %24 Requlred Informotlon The following information applies to the questions displayed below.] 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 $60. Budgeted unit sales for June, July, August, and September are 8,300, 14,000, 16,000, and 17,000 units, respectively. All sales are on credit. b. Forty percent of credit sales are collected in the month of the sale and 60% in the following month. c. The ending finished goods inventory equals 25% of the following month's unit sales. d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.00 per pound. e. Forty percent of raw materials purchases are paid for in the month of purchase and 60% in the following month. The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours. g. The variable selling and administrative expense per unit sold is $1.50. The fixed selling and administrative expense per 000 !ivo 13. If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $6 per direct labor-hour, what is the estimated cost of goods sold and gross margin for July? Estimated cost of goods sold! < Prev 14 15 of 15 Next > nere to search 近 F4 F5 F7 F8 いゴ & 23
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![LL
%24
Requlred Informotlon
The following information applies to the questions displayed below.]
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 $60. Budgeted unit sales for June, July, August, and September are 8,300,
14,000, 16,000, and 17,000 units, respectively. All sales are on credit.
b. Forty percent of credit sales are collected in the month of the sale and 60% in the following month.
c. The ending finished goods inventory equals 25% of the following month's unit sales.
d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of
finished goods requires 5 pounds of raw materials. The raw materials cost $2.00 per pound.
e. Forty percent of raw materials purchases are paid for in the month of purchase and 60% in the following month.
The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours.
g. The variable selling and administrative expense per unit sold is $1.50. The fixed selling and administrative expense per
000 !ivo
13. If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $6 per direct labor-hour,
what is the estimated cost of goods sold and gross margin for July?
Estimated cost of goods sold!
< Prev
14
15 of 15
Next >
nere to search
近
F4
F5
F7
F8
いゴ
&
23](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F504f9a44-b97f-4fd5-a72d-264d10f13ba2%2Faa213324-7c27-4ada-ae7c-dea7ac7833b9%2Fhqz2m58.jpeg&w=3840&q=75)
Transcribed Image Text:LL
%24
Requlred Informotlon
The following information applies to the questions displayed below.]
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 $60. Budgeted unit sales for June, July, August, and September are 8,300,
14,000, 16,000, and 17,000 units, respectively. All sales are on credit.
b. Forty percent of credit sales are collected in the month of the sale and 60% in the following month.
c. The ending finished goods inventory equals 25% of the following month's unit sales.
d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of
finished goods requires 5 pounds of raw materials. The raw materials cost $2.00 per pound.
e. Forty percent of raw materials purchases are paid for in the month of purchase and 60% in the following month.
The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours.
g. The variable selling and administrative expense per unit sold is $1.50. The fixed selling and administrative expense per
000 !ivo
13. If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $6 per direct labor-hour,
what is the estimated cost of goods sold and gross margin for July?
Estimated cost of goods sold!
< Prev
14
15 of 15
Next >
nere to search
近
F4
F5
F7
F8
いゴ
&
23
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