Required information[The following information applies to the questions displayed below.]Morganton Company makes one product and provided the following information to help prepare itsmaster budget:a. The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and Septemberare 8,000, 11,000, 13,000, and 14,000 units, respectively. All sales are on credit.b. Thirty percent of credit sales are collected in the month of the sale and 70% 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 productionneeds. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.20per pound.e. Twenty percent of raw materials purchases are paid for in the month of purchase and 80% in thefollowing 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 $1.20. The fixed selling andadministrative expense per month is $61,000.12. If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $7 per directlabor-hour, what is the estimated finished goods inventory balance at the end of July?Ending finished goods inventory

The budget is prepared to estimate the requirements for the period. The finished goods inventory…

Answered: master budget: a. The budgeted selling…

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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Check my work Victoria Inc. 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 $80. Budgeted unit sales for June, July, August, and September are 9,900, 10,900, 12,900, and 15,900 units, respectively. All sales are on credit. b. 60% of credit sales are collected in the month of the sale and 40% in the following month. c. The ending finished goods inventory equals 20% 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 kg of raw materials. The raw materials cost $2.00 per kilogram. e. 30% of raw materials purchases are paid for in the month of purchase and 70% in the following month. f. The direct labour wage rate is $20 per hour. Each unit of finished goods requires two direct labour-hours. g. The variable selling and administrative…
TCB Inc. prepared the following sales budget: October November December January February Month Cash Sales Credit Sales $225,000 $180,000 $330,000 $210,000 $135,000 $190,000 $142,000 $210,000 $168,000 $265,000 Collections on credit sales are 50% in the month of sale, 40% in the month following the sale, and 10% in the second month following the sale. Calculate the budgeted total cash receipts for the December cash budget. $325,000 $197,000 $332,000 $135,000
Required 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 $65. Budgeted unit sales for June, July, August, and September are 9,000, 21,000, 23,000, and 24,000 units, respectively. All sales are on credit. b. Thirty percent of credit sales are collected in the month of the sale and 70% in the following month. c. The ending finished goods inventory equals 30% of the following month's unit sales. d. The ending raw materials inventory equals 20% of the following month's raw materials production needs. Each unit of finished goods 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 the month of purchase and 80% in the following month. f. The direct labor wage rate is $14 per hour. Each unit of finished goods requires two…
Required information Skip to question [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: The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 8, 600, 17,000, 19,000, and 20,000 units, respectively. All sales are on credit. Thirty percent of credit sales are collected in the month of the sale and 70% in the following month. The ending finished goods inventory equals 25% of the following month's unit sales. 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 $2.40 per pound. Thirty five percent of raw materials purchases are paid for in the month of purchase and 65% in the following month. The direct labor wage rate is $14 per hour. Each unit of finished goods requires…
Budgeted income statement and supporting budgets for three months Newport Inc. gathered the following data for use in developing the budgets for the first quarter (June, July, a. Estimated sales at $36 per unit: June 300,000 units July 400,000 units August 500,000 units September 500,000 units b. Estimated finished goods inventories: May 31 16,000 units 5% of next month's sales June 30 July 31 5% of next month's sales 5% of next month's sales c. Work in process inventories are estimated to be insignificant (zero). August 31 d. Estimated direct materials inventories: May 31 35,000 pounds June 30 40,000 pounds July 31 45,000 pounds August 31 50,000 pounds e. Manufacturing costs: Per Unit Direct materials (1.5 Ibs. per unit x $4 per Ib.) $ 6.00 Direct labor (0.4 hr. per unit x $25 per hr.) 10.00 Variable factory overhead ($4 per direct labor hour) 1.60 Fixed factory overhead ($1,200,000 per month allocated using 500,000 units) 2.40 Total per-unit manufacturing costs $20.00 f. Selling…
Part #5: E Company has budgeted sales revenues of $174,000 for May, $210,000 for June, $238,000 for July, and $166,000 for August. To prepare a cash budget, the company must determine the budgeted cash collections from sales. Generally the trend has been 55 percent collected in the month of sale, 25 percent collected in the month following sale, 18 percent collected in the second month following sale, and 2 percent uncollectible. Also, E Company grants a 2 percent cash discount to customers who pay in the month of sale (so they only collect 98 percent of the total amount for those sales instead of the usual 100 percent). Prepare a schedule of cash collections for the month of July only.
Down Under Products' sales budget for the next four months is as follows: Unit Sales April May June July 78,000 85,000 118,000 94,000 The company wants its ending inventory levels to equal 20% of the following month's unit sales. The inventory at the end of March was 15,600 units. Required: Prepare a production budget, by month and in total, for the second quarter. Budgeted unit sales Total needs Required production in units Down Under Products, Limited Production Budget April May June Quarter 0 0 0 0 0 0 0 0
Shaw Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Budgeted selling price per unit Budgeted unit sales (all on credit): January February March April S O $544,500 O $907,500 O $605,000 O $363,000 Credit sales are collected: 40% in the month of the sale 60% in the following month The budgeted accounts receivable balance at the end of February is closest to: 121 7,000 7,500 11,900 14,900
Hiking General Store prepared the following sales budget: MONTH BUDGETED SALES MARCH RM4,000.00 APRIL RM14,000.00 MAY RM12,000.00 JUNE RM16,000.00 The expected gross profit rate is 30% and the inventory at the end of February was RM14,000. Desired inventory levels at the end of the month are 10% of the next month Cost Of Good Sold. Compute the total purchase budgetedfor April for Hiking General Store. Support your answer with explaination.
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Down Under Products' sales budget for the next four months is as follows: Unit Sales April May June July 50,000 75,000 90,000 80,000 The company wants its ending inventory levels to equal 10% of the following month's unit sales. The inventory at the end of March was 5,000 units. Required: Prepare a production budget, by month and in total, for the second quarter. Budgeted unit sales Total needs Required production in units Down Under Products, Limited Production Budget April May June Quarter
Required information [The following information applies to the questions displayed below.] Morganton Company makes one product, and has 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 $70. Budgeted unit sales for June, July, August, and September are 8,400, 10,000, 12,000, and 13,000 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 20% 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 kilograms of raw materials. The raw materials cost $2.00 per kilogram. e. Thirty percent of raw materials purchases are paid for in the month of purchase and 70% in the following month. f. The direct labour wage rate is $15 per…

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