**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

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