Please show all work , I need to see the stepscalculated out...Thank you!!
Morganton Company makes one product and it provided thefollowing information to help prepare the master budget for itsfour months of operations:
(a) The budgeted selling price per unit is $60. Budgeted unit salesfor June, July, August, and September are 9,200, 23,000, 25,000,and 26,000 units, respectively. All sales are on credit.
(b) Thirty-percent ofcredit sales are collected in the month of the sale and 70% in thefollowing month. (c) The ending finishedgoods inventory equals 20% of the following monthâs unitsales. (d) The ending raw materials inventory equals 10% of the followingmonthâs raw materials production needs. Each unit of finished goodsrequires 4 pounds of raw materials. The raw materials cost $2.50per pound.
(e) Thirty-percent ofraw materials purchases are paid for in the month of purchase and70% in the following month. (f) The direct labor wage rate is $13 per hour. Each unit offinished goods requires two direct labor-hours.
(g) The variable selling and administrative expense per unit sold is$1.80. The fixed selling and administrative expense per month is$62,000.
If 100,800 poundsof raw materials are needed to meet production in August, how manypounds of raw materials should be purchased in July?
Rawmaterials to be purchased pounds
Please show all work , I need to see the stepscalculated out...Thank you!!
Morganton Company makes one product and it provided thefollowing information to help prepare the master budget for itsfour months of operations:
| (a) | The budgeted selling price per unit is $60. Budgeted unit salesfor June, July, August, and September are 9,200, 23,000, 25,000,and 26,000 units, respectively. All sales are on credit. |
| (b) | Thirty-percent ofcredit sales are collected in the month of the sale and 70% in thefollowing month. |
| (c) | The ending finishedgoods inventory equals 20% of the following monthâs unitsales. |
| (d) | The ending raw materials inventory equals 10% of the followingmonthâs raw materials production needs. Each unit of finished goodsrequires 4 pounds of raw materials. The raw materials cost $2.50per pound. |
| (e) | Thirty-percent ofraw materials purchases are paid for in the month of purchase and70% in the following month. |
| (f) | The direct labor wage rate is $13 per hour. Each unit offinished goods requires two direct labor-hours. |
| (g) | The variable selling and administrative expense per unit sold is$1.80. The fixed selling and administrative expense per month is$62,000. |
| If 100,800 poundsof raw materials are needed to meet production in August, how manypounds of raw materials should be purchased in July? |
| Rawmaterials to be purchased | pounds |
Related questions
| [The following information applies to the questionsdisplayed below.] |
Morganton Company makes one product and it provided thefollowing information to help prepare the master budget for itsfirst four months of operations: |
| a. | The budgeted selling price per unit is $65. Budgeted unit salesfor June, July, August, and September are 9,900, 30,000, 32,000,and 33,000 units, respectively. All sales are on credit. |
| b. | Forty percent of credit sales are collected in the month of thesale and 60% in the following month. |
| c. | Theending finished goods inventory equals 30% of the following monthâsunit sales. |
| d. | The ending raw materials inventory equals 20% of the followingmonthâs raw materials production needs. Each unit of finished goodsrequires 4 pounds of raw materials. The raw materials cost $2.50per pound. |
| e. | Forty percent of raw materials purchases are paid for in themonth of purchase and 60% in the following month. |
| f. | The direct labor wage rate is $12 per hour. Each unit offinished goods requires two direct labor-hours. |
| g. | The variable selling and administrative expense per unit sold is$1.90. The fixed selling and administrative expense per month is$69,000. |
Accordingto the production budget, how many units should be produced in Julyand,
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