Reference no: EM131259454
Morganton 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 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.
1. What are the budgeted sales for July?
2. What are the expected cash collections for July?
3. What is the accounts receivable balance at the end of July?
4. According to the production budget, how many units should be produced in July?
5. If 81,250 pounds of raw materials are needed to meet production in August, how many pounds of raw materials should be purchased in July?
6. What is the estimated cost of raw materials purchases for July?
7. If the cost of raw material purchases in June is $102,025, what are the estimated cash disbursements for raw materials purchases in July?
8. What is the estimated accounts payable balance at the end of July?
9. What is the estimated raw materials inventory balance (in dollars) at the end of July?
10. What is the total estimated direct labor cost for July assuming the direct labor workforce is adjusted to match the hours required to produce the forecasted number of units produced?
11. If the company always uses an estimated predetermined plantwide overhead rate of $6 per direct labor-hour, what is the estimated unit product cost? (Round your answer to 2 decimal places.)
12. What is the estimated finished goods inventory balance at the end of July, if the company always uses an estimated predetermined plantwide overhead rate of $6 per direct labor-hour?
13. What is the estimated cost of goods sold and gross margin for July, if the company always uses an estimated predetermined plantwide overhead rate of $6 per direct labor-hour?
14. What is the estimated total selling and administrative expense for July?
15. What is the estimated net operating income for July, if the company always uses an estimated predetermined plantwide overhead rate of $6 per direct labor-hour?
|
Statements about materiality
: Which of the following statements about materiality is not correct ? Which of ghe the following are considered pervasive constraints by statement of financial accounting cbcept no 2. In classifying the elements of financial statements, the primary di..
|
|
Additional paid-in capital would be credited
: If a firm sells treasury stock for more than it paid for it: total owners' equity would not change. retained earnings would increase. additional paid-in capital would be credited.
|
|
Determine amount of taxable dividend-nontaxable distribution
: Determine the amount of taxable dividend, nontaxable distribution, and capital gain, for the distributions made in each of the following cases: SHOW WORK
|
|
What was the net cash provided by operating activities
: Baseball Town, Inc. borrowed $20,000 for 9 months at an APR of 3.00%. The amount of interest expense on this loan was: In January of 2016, SC, Inc. had 300,000 shares of common stock authorized, of which have been 200,000 issued, and 150,000 shares o..
|
|
What are the expected cash collections and budgeted sales
: Morganton Company makes one product and it provided the following information to help prepare the master budget for its first four months of operations: The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and Septe..
|
|
Determine the basis of stock in the hands of the shareholder
: Determine the basis of stock in the hands of the shareholder in each of the following instances. Assume that the 80% rule is met in all cases. Contribution of property with a basis of $1,000 and an FMV of $1,400. Contribution of property with a basis..
|
|
What is the effect on partnership basis
: Barry and Kurt are equal partners in the BK Partnership. Barry receives a guaranteed payment of $55,000. In addition to the guaranteed payment, Barry withdraws $10,000 from the partnership. The partnership has $24,000 in ordinary income during the ye..
|
|
Determine the taxable portion of social security benefits
: Dan and Diana file a joint return. Dan earned $31,000 during the year before losing his job. Diana received Social Security benefits of $5,000. Determine the taxable portion of the Social Security benefits. What is the taxable portion of the Social S..
|
|
Basis of the equipment in the hands of the partnership
: On June 1 of the current year, Patti contributes equipment with a $45,000 basis and a $35,000 FMV in exchange for a partnership interest. She purchased the equipment three years ago. What is Patti's basis in her partnership interest? What is Patti's ..
|