Morganton Company makes one product and it provided thefollowing information to help prepare the master budget:a. The budgeted selling price per unit is $65. Budgeted unit sales forJune, July, August, and September are 9,000, 21,000, 23,000, and24,000 units, respectively. All sales are on credit.b. Thirty percent of credit sales are collected in the month of the saleand 70% in the following month.c. The ending finished goods inventory equals 30% of the followingmonth's unit sales.d. The ending raw materials inventory equals 20% of the followingmonth's raw materials production needs. Each unit of finishedgoods requires 5 pounds of raw materials. The raw materials cost$2.70 per pound.e. Twenty percent of raw materials purchases are paid for in themonth of purchase and 80% in the following month.f. The direct labor wage rate is $14 per hour. Each unit of finishedgoods requires two direct labor-hours.g. The variable selling and administrative expense per unit sold is$1.60. The fixed selling and administrative expense per month is$60,000.13. If we assume that there is no fixed manufacturing overhead and the variablemanufacturing overhead is $8 per direct labor-hour, what is the estimated cost ofgoods sold and gross margin for July?Estimated cost of goods soldEstimated gross margin

Given in the question: Budgeted Selling Price Per unit $65 Month Sales Units June…

Answered: Estimated cost of goods sold Estimated…

Business

Accounting

Estimated cost of goods sold Estimated gross margin

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Explain how cost information differs for profit measurement/inventory valuation requirements compared with decision-making requirements.
Product costs are: * Treated in the same manner as period costs Subtracted from cost of goods sold Inventoried Expensed when incurred
Under the weighted average cost, when a unit is sold, the average cost of each unit in inventory is assigned to cost of goods sold. True O False
A product cost is: A.Shown on the income statement with operating expenses B. Expensed in the period the product is sold C. Expensed in the period in which it incurred D. Shown with current liabilities on the balance sheet
what is margin of safety as a percentage of sales
A multi- step income statement ___________. A. Seperates cost of goods sold from operating expenses. B. Considers imterest revenue an operating activity. C. Is another name for a simple income statement. D. Combines cost of goods sold and operating expenses.
in a merchandising business gross profit is equal to the sales revenue minus (a) the sum of cost of goods sold and sales commissions (b) cost of goods sold (c) the sum of cost of goods sold and operating expenses (d) the sum of cost of goods sold, operating expenses and prepaid expenses
You have the following information for Wildhorse Gems. Wildhorse uses the periodic system of accounting for its inventory transactions. Wildhorse only carries one brand and size of diamonds-all are identical. Each batch of diamonds purchased is carefully coded and marked with its purchase cost. March 1 March 31 March 5: March 10- March 25 Beginning inventory 150 diamonds at a cost of $320 per diamond. Purchased 200 diamonds at a cost of $360 each. Sold 180 diamonds for $630 each. Purchased 350 diamonds at a cost of $385 each. Sold 395 diamonds for $680 each.
Lopez Corporation incurred the following costs while manufacturing its product. Materials used in product Depreciation on plant Property taxes on store Labor costs of assembly-line workers Factory supplies used $121,000 61,000 7,600 111,000 24,000 Advertising expense Property taxes on plant Delivery expense Sales commissions Salaries paid to sales clerks $46,000 15,000 22,000 36,000 51,000 Work in process inventory was $13,000 at January 1 and $16,600 at December 31. Finished goods inventory was $61,000 at January 1 and $45,700 at December 31.
Which of the following statements correctly complete the sentence:"Gross Margin equals":I. sales revenue less (minus) cost of goods sold.II. contribution margin less (minus) fixed costs.III. operating income plus all period costs.IV. sales revenue less (minus) cost of goods manufactured.
beginning finished goods inventory plus cost of goods manufactured equals cost of goods sold true false