-- Required information [The following information applies to the questions displayed below.] Morganton Company makes one product and provided the following information to help prepare its master budget: a. The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 9,800, 29,000, 31,000, and 32,000 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 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 4 pounds of raw materials. The raw materials cost $2.50 per pound. e. Thirty percent of raw materials purchases are paid for in the month of purchase and 70% 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 $1.80. The fixed selling and administrative expense per month is $68,000. 13. If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $7 per direct labor-hour, what are the estimated cost of goods sold and gross margin for July? Estimated cost of goods sold Estimated gross margin
-- Required information [The following information applies to the questions displayed below.] Morganton Company makes one product and provided the following information to help prepare its master budget: a. The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 9,800, 29,000, 31,000, and 32,000 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 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 4 pounds of raw materials. The raw materials cost $2.50 per pound. e. Thirty percent of raw materials purchases are paid for in the month of purchase and 70% 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 $1.80. The fixed selling and administrative expense per month is $68,000. 13. If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $7 per direct labor-hour, what are the estimated cost of goods sold and gross margin for July? Estimated cost of goods sold Estimated gross margin
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![--
Required information
[The following information applies to the questions displayed below.]
Morganton Company makes one product and provided the following information to help prepare its master budget:
a. The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 9,800,
29,000, 31,000, and 32,000 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 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 4 pounds of raw materials. The raw materials cost $2.50 per pound.
e. Thirty percent of raw materials purchases are paid for in the month of purchase and 70% 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 $1.80. The fixed selling and administrative expense per
month is $68,000.
13. If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $7 per direct labor-hour,
what are the estimated cost of goods sold and gross margin for July?
Estimated cost of goods sold
Estimated gross margin](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffa413bcf-f4d4-4563-8c5c-bfbbe2a7d62c%2F6ccb8ec2-cec5-47d4-a507-429e9d141fb1%2F7imtcvt_processed.png&w=3840&q=75)
Transcribed Image Text:--
Required information
[The following information applies to the questions displayed below.]
Morganton Company makes one product and provided the following information to help prepare its master budget:
a. The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 9,800,
29,000, 31,000, and 32,000 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 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 4 pounds of raw materials. The raw materials cost $2.50 per pound.
e. Thirty percent of raw materials purchases are paid for in the month of purchase and 70% 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 $1.80. The fixed selling and administrative expense per
month is $68,000.
13. If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $7 per direct labor-hour,
what are the estimated cost of goods sold and gross margin for July?
Estimated cost of goods sold
Estimated gross margin
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