**Morganton Company Master Budget Information**Morganton Company manufactures a single product and provides the following data for budget preparation:a. **Selling Price and Sales Forecast:** - Budgeted selling price per unit: $65. - Budgeted unit sales for: - June: 9,000 units. - July: 21,000 units. - August: 23,000 units. - September: 24,000 units. - All sales are on credit.b. **Credit Sales Collection:** - 30% of credit sales are collected in the same month. - 70% are collected in the following month.c. **Finished Goods Inventory:** - Ending inventory equals 30% of the next month’s unit sales.d. **Raw Materials Inventory:** - Ending inventory equals 20% of the next month’s production needs. - Each unit requires 5 pounds of raw materials. - Cost per pound of raw materials: $2.70.e. **Raw Material Purchases Payment:** - 20% of purchases paid in the purchase month. - 80% paid in the following month.f. **Labor Costs:** - Direct labor rate: $14 per hour. - Each unit requires two labor hours.g. **Selling and Administrative Expenses:** - Variable expense per unit: $1.60. - Fixed monthly expense: $60,000.**Budget Calculation Example:**- If 116,500 pounds of raw materials are needed for August, estimate the accounts payable at the end of July, considering the purchase and payment terms outlined above.

Raw material refers to the major sources of developing of a product since raw materials are…

anton Company makes one product and it provi ving information to help prepare the master bud e budgeted selling price per unit is $65. Budget ne, July, August, and September are 9,000, 21,0 ,000 units, respectively. All sales are on credit. irty percent of credit sales are collected in the m d 70% in the following month. e ending finished goods inventory.equals 30%

anton Company makes one product and it provi ving information to help prepare the master bud e budgeted selling price per unit is $65. Budget ne, July, August, and September are 9,000, 21,0 ,000 units, respectively. All sales are on credit. irty percent of credit sales are collected in the m d 70% in the following month. e ending finished goods inventory.equals 30%

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

Corning Incorporated sells its product for $24 per unit. Its actual and projected sales follow: Units Dollars January (actual) 18,500 $444,000 February (actual) 23,000 552,000 March (budgeted) 19,800 475,200 April (budgeted) 18,950 454,800 May (budgeted) 22,000 528,000 Here is added information about Corning’s operations: All sales are on credit. Recent experience show that 35% of sales are collected in the month of the sale, 45% in the month following the sale, 17% in the second month after the sale, and 3% prove to be uncollectible. The product’s purchase price is $15 per unit. All payments are payable within 21 days. Thus 30% of purchases in any given month are paid for in that month, with the remaining 70% paid for in the following month. The company has a policy to maintain an ending inventory of 20% of the next month’s projected sales plus a safety stock of 100 units. The January 31 and February 28…
Cheetos & Cheeeters produces Deluxe Leather Cheeters The production budget for the next four months is July stoo units, August 7500 units, September 7700 units. October 8700 units Each Cheeter requires o e square meters of leather. Cheetos & Cheeeters's leather inventory policy is 20% of next months production needs On July 1 leather inventory was expected to be 696 square meters Leather is expected to cost $13.00 per square meter in June but go up to $14.00 per square meter in July What is the expected cost of leather purchases in July? Select one a Ss1.576 o b SS2476 50.076 O 1 152.576
Zily Co. predicts sales of $185,000 for June. Zily pays a sales manager a monthly salary of $6.600 and a commission of 8% of that month's sales dollars. Prepere a selling expense budget for the month of June. ZILLY CO. Selling Expense Budget For Month Ended June 30 Budgeled sales
Preparing an operating budget-cost of goods sold budget Butler Company expects to sell, 1,650 units in January and 1,550 units in February. The company expects to incur the following product costs: The beginning balance in Finished Goods Inventory is 250 units at $200 each for a total of $50,000. Butler uses FIFO inventory costing method. Prepare the cost of goods sold budget for Butler for January and February.
Please do not give solution in image format thanku
Aztec Company sells its product for $150 per unit. Its actual and budgeted sales follow. May (Actual) June (Budget) July (Budget) August (Budget) 4,000 $ 600,000 2,200 5,000 4,100 $ 330,000 $ 750,000 $ 615,000 Sales units Sales dollars All sales are on credit. Collections are as follows: 22% is collected in the month of the sale, and the remaining 78% is collected in the month following the sale. Merchandise purchases cost $110 per unit. For those purchases, 60% is paid in the month of purchase and the other 40% is paid in the month following purchase. The company has a policy to maintain an ending monthly inventory of 24% of the next month's unit sales. The May 31 actual inventory level of 1,200 units is consistent with this policy. Selling and administrative expenses of $155,000 per month are paid in cash. The company's minimum cash balance at month-end is $110,000. Loans are obtained at the end of any month when the preliminary cash balance is below $110,000. Any preliminary cash…
Corning Incorporated sells its product for $24 per unit. Its actual and projected sales follow: Units Dollars January (actual) 18,500 $444,000 February (actual) 23,000 552,000 March (budgeted) 19,800 475,200 April (budgeted) 18,950 454,800 May (budgeted) 22,000 528,000 Here is added information about Corning’s operations: All sales are on credit. Recent experience show that 35% of sales are collected in the month of the sale, 45% in the month following the sale, 17% in the second month after the sale, and 3% prove to be uncollectible. The product’s purchase price is $15 per unit. All payments are payable within 21 days. Thus 30% of purchases in any given month are paid for in that month, with the remaining 70% paid for in the following month. The company has a policy to maintain an ending inventory of 20% of the next month’s projected sales plus a safety stock of 100 units. The January 31 and February 28…
Questien Zahra Co. makes and sells a single product. For ench one unit of product. 2 meters of Material are needed. Budgeted sales for the next 3 months are as follows Audgsted Sales January February March 29.200 units 33,500 units 28,600 units Zahra Co. wants to maintain an ending finished goods inventory equal to 20% of the next month's budgeted sale units and an ending inveitory of materials equal to 10 of the next month's production needs. The cost for each meter of tmaterial is $2.50. Required: Prepare the direct materials purchase budget for February, showing the total dollar amount needed to purchase materials.
Please do not give solution in image format thanku
7.1
Kindly help me answer the letters D & E. Thank you!
Do not give image format