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 $2.00 per pound. e. Forty percent of raw materials purchases are pald 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 varlable selling and administrative expense per unit sold Is $1.50. The fixed selling and administrative expense per month Is $64,000. Foundational 8-9 (Algo) 9. If 81,250 pounds of raw materlals are needed to meet production In August, what is the estimated raw materials inventory balance at the end of July?
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 $2.00 per pound. e. Forty percent of raw materials purchases are pald 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 varlable selling and administrative expense per unit sold Is $1.50. The fixed selling and administrative expense per month Is $64,000. Foundational 8-9 (Algo) 9. If 81,250 pounds of raw materlals are needed to meet production In August, what is the estimated raw materials inventory balance at the end of July?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
This is the second time that I asked this question
Part 9.
Raw materials needed to meet production in August = 81,250 pounds
Estimated raw materials inventory balance at end of July = 10% * 81,250 = 8,125 pounds
they gave that answer
The answer should be in dollars.
![### Required Information
**The Foundational 15 (Algo) [LO8-2, LO8-3, LO8-4, LO8-5, LO8-7, LO8-9, LO8-10]**
*[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:
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 $2.00 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.
---
### Foundational 8-9 (Algo)
9. If 81,250 pounds of raw materials are needed to meet production in August, what is the estimated raw materials inventory balance at the end of July?
**Raw material inventory balance:**
[Answer Entry Box]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f61e626-7d33-482f-bf18-423884fdaa73%2Ffcf70ff0-46f7-4742-8895-91f329765dcf%2Fxki0t5o_processed.png&w=3840&q=75)
Transcribed Image Text:### Required Information
**The Foundational 15 (Algo) [LO8-2, LO8-3, LO8-4, LO8-5, LO8-7, LO8-9, LO8-10]**
*[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:
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 $2.00 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.
---
### Foundational 8-9 (Algo)
9. If 81,250 pounds of raw materials are needed to meet production in August, what is the estimated raw materials inventory balance at the end of July?
**Raw material inventory balance:**
[Answer Entry Box]
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