The fixed selling and administrative expense per month

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Reference no: EM131212366

Marganton Company makes one product and it provided the following information to help prepare the master budget for its first four months of operations. ( a) The budget selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 8,700, 18,000 20,000, and 21,000 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 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. (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 $1.90. The fixed selling and administrative expense per month is $68,000

Reference no: EM131212366

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