Reference no: EM132515280
Morganton Company makes one product and it provided the following information to help prepare the master budget:
- The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 8,500, 16,000, 18,000, and 19,000 units, respectively. All sales are on credit.
- Forty percent of credit sales are collected in the month of the sale and 60% in the following month.
- The ending finished goods inventory equals 20% of the following month's unit sales.
- 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.
- Thirty percent of raw materials purchases are paid for in the month of purchase and 70% in the following month.
- The direct labor wage rate is $13 per hour. Each unit of finished goods requires two direct labor-hours.
- The variable selling and administrative expense per unit sold is $1.70. The fixed selling and administrative expense per month is $66,000.
Question 1: What is the accounts receivable balance at the end of July?
Question 2: According to the production budget, how many units should be produced in July?
Question 3: If 91,000 pounds of raw materials are needed to meet production in August, how many pounds of raw materials should be purchased in July?
Question 4: If 91,000 pounds of raw materials are needed to meet production in August, what is the estimated cost of raw materials purchases for July?
Question 5: In July what are the total estimated cash disbursements for raw materials purchases? Assume the cost of raw material purchases in June is $106,400.
Question 6: If 91,000 pounds of raw materials are needed to meet production in August, what is the estimated accounts payable balance at the end of July?
Question 7: If 91,000 pounds of raw materials are needed to meet production in August, what is the estimated raw materials inventory balance at the end of July?
Question 8: What is the estimated total selling and administrative expense for July?
Question 9: If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $8 per direct labor-hour, what is the estimated net operating income for July? q
|
Topic - Intercompany Sale of Depreciable Assets- Cost Method
: Topic - Intercompany Sale of Depreciable Assets - Cost Method. What is the balance in the pre-consolidation Income (loss) from Subsidiary account for 2020
|
|
Compute the estimated standard error
: Two independent samples of observations were collected. For the first sample of 60 elements, the mean was 86 and the standard deviation 6.
|
|
What amount will be assigned to the November
: Refer to Stallworth Corp. If the company uses the FIFO inventory costing method, what amount will be assigned to the November 30 inventory
|
|
Test the hypothesis that the value of the population mean
: Given a sample mean of 83, a sample standard deviation of 12.5, and a sample size of 22, test the hypothesis that the value of the population mean is 70
|
|
What is the accounts receivable balance at the end of july
: What is the accounts receivable balance at the end of July? According to the production budget, how many units should be produced in July?
|
|
What was the amount of the credit to depreciation expense
: On April 1, 2020, Republic Company sold equipment to its wholly owned subsidiary, What was the amount of the credit to depreciation expense
|
|
State appropriate hypotheses for testing
: State appropriate hypotheses for testing whether hot chocolate sales have decreased.
|
|
Standard deviation of press life-hinton press
: Hinton Press hypothesizes that the average life of its largest web press is 14,500 hours. They know that the standard deviation of press life is 2,100 hours.
|
|
Provide a report containing appropriate issue identification
: Provide a report containing appropriate issue identification, analysis (financial and non-financial), and recommendations including an assessment
|