Post ACC211 Unit 5 Chapter 7 Assignment Latest 2017 August

[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 $60. Budgeted unit sales for June, July, August,
and September are 9,500, 26,000, 28,000, and 29,000 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 15% of the following month’s raw materials
production needs. Each unit of finished goods requires 4 pounds of raw
materials. The raw materials cost $2.40 per pound.

e.

Forty percent
of raw materials purchases are paid for in the month of purchase and 60% in
the following month.

f.

The direct
labor wage rate is $12 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 month is $65,000.

Required:

1.

What are the budgeted sales for
July?

2.

What are the expected cash
collections for July?

3.

What is the accounts receivable
balance at the end of July?

4.

According to the production
budget, how many units should be produced in July?

5.

If 113,000
pounds of raw materials are needed to meet production in August, how many
pounds of raw materials should be purchased in July?

6.

What is the estimated cost of raw
materials purchases for July?

7.

If the cost
of raw material purchases in June is $149,340, what are the estimated cash
disbursements for raw materials purchases in July?

8.

What is the estimated accounts
payable balance at the end of July?

9.

What is the estimated raw
materials inventory balance (in dollars) at the end of July?

10.

What is the
total estimated direct labor cost for July assuming the direct labor
workforce is adjusted to match the hours required to produce the forecasted
number of units produced?

11.

If the
company always uses an estimated predetermined plantwide overhead rate of $8
per direct labor-hour, what is the estimated unit product cost? (Round your answer to 2 decimal places.)

12.

What is the
estimated finished goods inventory balance at the end of July, if the company
always uses an estimated predetermined plantwide overhead rate of $8 per
direct labor-hour?

13.

What is the
estimated cost of goods sold and gross margin for July, if the company always
uses an estimated predetermined plantwide overhead rate of $8 per direct
labor-hour?

14.

What is the estimated total
selling and administrative expense for July?

15.

What is the
estimated net operating income for July, if the company always uses an
estimated predetermined plantwide overhead rate of $8 per direct labor-hour?