近 Requlred 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 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 $200 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 $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 month is $64.000. 11. 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 unit product cost? (Round your answer to 2 declmal places.) Unit product cost < Prev 11 12 of 15 Next ere to search F4 F5 F7 F8 F10
近 Requlred 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 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 $200 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 $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 month is $64.000. 11. 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 unit product cost? (Round your answer to 2 declmal places.) Unit product cost < Prev 11 12 of 15 Next ere to search F4 F5 F7 F8 F10
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![近
Requlred 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
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 $200 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 $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
month is $64.000.
11. 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 unit product cost? (Round your answer to 2 declmal places.)
Unit product cost
< Prev
11 12
of 15
Next
ere to search
F4
F5
F7
F8
F10](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F504f9a44-b97f-4fd5-a72d-264d10f13ba2%2Fef13d690-b9ca-459e-9f2c-c63b6128d25c%2Ftqmr7pc.jpeg&w=3840&q=75)
Transcribed Image Text:近
Requlred 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
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 $200 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 $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
month is $64.000.
11. 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 unit product cost? (Round your answer to 2 declmal places.)
Unit product cost
< Prev
11 12
of 15
Next
ere to search
F4
F5
F7
F8
F10
Expert Solution
Step 1
Answer -
Given,
Direct Labour Rate = $15
Direct Material Rate = $2
Overhead rate = $6 (Given)
Product cost = DM + DL + OH
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education