Question

Required information Skip to question [The following information applies to the questions displayed below.] Morganton Company...

Required information

Skip to question

[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:

  1. The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 8,400, 10,000, 12,000, and 13,000 units, respectively. All sales are on credit.
  2. Forty percent of credit sales are collected in the month of the sale and 60% in the following month.
  3. The ending finished goods inventory equals 20% of the following month’s unit sales.
  4. 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.
  5. Thirty percent of raw materials purchases are paid for in the month of purchase and 70% in the following month.
  6. The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours.
  7. The variable selling and administrative expense per unit sold is $1.80. The fixed selling and administrative expense per month is $60,000.

9. If 61,000 pounds of raw materials are needed to meet production in August, what is the estimated raw materials inventory balance at the end of July?

11. If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $10 per direct labor-hour, what is the estimated unit product cost?

12. If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $10 per direct labor-hour, what is the estimated finished goods inventory balance at the end of July?

13. If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $10 per direct labor-hour, what is the estimated cost of goods sold and gross margin for July?

15. If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $10 per direct labor-hour, what is the estimated net operating income for July?

Homework Answers

Answer #1
9
Estimated raw materials inventory balance 12200 =61000*10%*2.00
11
Direct materials 10.00 =5*2.00
Direct labor 30.00 =2*15
Overhead 20.00 =2*10
Estimated unit product cost 60.00
12
Finished goods inventory units 2400 =12000*20%
X Estimated unit product cost 60.00
Estimated finished goods inventory balance 144000
13
Estimated cost of goods sold 600000 =10000*60.00
Estimated sales revenue 700000 =10000*70
Less: Estimated cost of goods sold 600000
Estimated gross margin 100000
15
Estimated gross margin 100000
Less : Total selling and administrative expense 78000 =(10000*1.80)+60000
Estimated net operating income 22000
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Required information [The following information applies to the questions displayed below.] Morganton Company makes one product...
Required information [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: The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 8,000, 11,000, 13,000, and 14,000 units, respectively. All sales are on credit. Thirty percent of credit sales are collected in the month of the sale and 70% in the following month. The ending finished...
Required information [The following information applies to the questions displayed below.] Morganton Company makes one product...
Required information [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: The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 8,900, 20,000, 22,000, and 23,000 units, respectively. All sales are on credit. Forty percent of credit sales are collected in the month of the sale and 60% in the following month. The ending finished...
Practice Ch 7 Foundational 15 [The following information applies to the questions displayed below.] Morganton Company...
Practice Ch 7 Foundational 15 [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 for its first four months of operations: a. The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 8,700, 18,000, 20,000, and 21,000 units, respectively. All sales are on credit. b. Forty percent of credit sales are collected in the month...
[The following information applies to the questions displayed below.] Morganton Company makes one product and it...
[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 for its first four months of operations: a. The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 9,300, 24,000, 26,000, and 27,000 units, respectively. All sales are on credit. b. Forty percent of credit sales are collected in the month of the sale and 60%...
Plz dont make me burn all my question on this ne problem thx Required information [The...
Plz dont make me burn all my question on this ne problem thx Required information [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: The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 9,600, 27,000, 29,000, and 30,000 units, respectively. All sales are on credit. Thirty percent of credit sales are collected in the...
The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and...
The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 8,900, 20,000, 22,000, and 23,000 units, respectively. All sales are on credit. Forty percent of credit sales are collected in the month of the sale and 60% in the following month. The ending finished goods inventory equals 20% of the following month’s unit sales. The ending raw materials inventory equals 10% of the following month’s raw materials production needs. Each unit of...
The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and...
The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 8,900, 20,000, 22,000, and 23,000 units, respectively. All sales are on credit. Forty percent of credit sales are collected in the month of the sale and 60% in the following month. The ending finished goods inventory equals 20% of the following month’s unit sales. The ending raw materials inventory equals 10% of the following month’s raw materials production needs. Each unit of...
[The following information applies to the questions displayed below.] Iguana, Inc., manufactures bamboo picture frames that...
[The following information applies to the questions displayed below.] Iguana, Inc., manufactures bamboo picture frames that sell for $20 each. Each frame requires 4 linear feet of bamboo, which costs $2.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $13 per hour. Iguana has the following inventory policies: Ending finished goods inventory should be 40 percent of next month’s sales. Ending raw materials inventory should be 30 percent of next month’s production. Expected...
[The following information applies to the questions displayed below.] Sweeten Company had no jobs in progress...
[The following information applies to the questions displayed below.] Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March—Job P and Job Q. Job P was completed and sold by the end of March and Job Q was incomplete at the end of March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information is available for the company as a...
Required information [The following information applies to the questions displayed below.] Sierra Company manufactures woven blankets...
Required information [The following information applies to the questions displayed below.] Sierra Company manufactures woven blankets and accounts for product costs using process costing. Data below are for one of its processing departments. The following information is available regarding its May inventories Beginning Inventory Ending Inventory Raw materials inventory $ 66,000 $ 43,000 Work in process inventory 404,000 541,000 Finished goods inventory 602,000 532,000 The following additional information describes the company's production activities for May. Raw materials purchases (on credit)...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT