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 8,400, 15,000, 17,000, and 18,000 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 $2.50 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 $12 per hour. Each unit of finished goods requires two direct labor-hours. g. The variable selling and administrative expense per unit sold is $1.60. The fixed selling and administrative expense per month is $65,000. f 86,500 pounds of raw materials are needed to meet production in August, what is the estimated accounts payable balance a d of July?
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 8,400, 15,000, 17,000, and 18,000 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 $2.50 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 $12 per hour. Each unit of finished goods requires two direct labor-hours. g. The variable selling and administrative expense per unit sold is $1.60. The fixed selling and administrative expense per month is $65,000. f 86,500 pounds of raw materials are needed to meet production in August, what is the estimated accounts payable balance a d of July?
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 produces a single product and has provided the following data for preparing the master budget:
- **a.** The budgeted selling price per unit is $65. Expected unit sales for June, July, August, and September are 8,400, 15,000, 17,000, and 18,000 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 is 30% of the next month’s unit sales.
- **d.** The ending raw materials inventory equals 20% of the next month’s raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials, which cost $2.50 per pound.
- **e.** Thirty percent of raw materials purchases are paid for in the month of purchase, and 70% in the ensuing month.
- **f.** The hourly direct labor wage is $12. Each unit of finished goods requires two direct labor-hours.
- **g.** The variable selling and administrative expense per unit sold is $1.60. The fixed selling and administrative cost per month is $65,000.
---
### Question
8. If 86,500 pounds of raw materials are required for production in August, calculate the estimated accounts payable balance at the conclusion of July.
**Note:** This question is accompanied by a table labeled "Accounts Payable," intended for inputting numerical calculations, though no specific details or calculations are shown within the image about the accounts payable balance itself.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9ecbc6b6-6518-454f-989a-d1b2a8923a43%2Fd441379a-7be0-4418-af10-f9fe4e0bc4a9%2Fbr1ucv5_processed.png&w=3840&q=75)
Transcribed Image Text:### Required Information
**[The following information applies to the questions displayed below.]**
Morganton Company produces a single product and has provided the following data for preparing the master budget:
- **a.** The budgeted selling price per unit is $65. Expected unit sales for June, July, August, and September are 8,400, 15,000, 17,000, and 18,000 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 is 30% of the next month’s unit sales.
- **d.** The ending raw materials inventory equals 20% of the next month’s raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials, which cost $2.50 per pound.
- **e.** Thirty percent of raw materials purchases are paid for in the month of purchase, and 70% in the ensuing month.
- **f.** The hourly direct labor wage is $12. Each unit of finished goods requires two direct labor-hours.
- **g.** The variable selling and administrative expense per unit sold is $1.60. The fixed selling and administrative cost per month is $65,000.
---
### Question
8. If 86,500 pounds of raw materials are required for production in August, calculate the estimated accounts payable balance at the conclusion of July.
**Note:** This question is accompanied by a table labeled "Accounts Payable," intended for inputting numerical calculations, though no specific details or calculations are shown within the image about the accounts payable balance itself.
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