[The following information applies to the questions displayed below.]
Morganton Company makes one product and it provided the following information to help prepare
a. The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and Septe
20,000, 22,000, and 23,000 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 mont
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
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 fo
f. The direct labor wage rate is $13 per hour. Each unit of finished goods requires two direct labor-h
g. The variable selling and administrative expense per unit sold is $1.50. The fixed selling and admin
month is $70,000.
9. If 111,000 pounds of raw materials are needed to meet production in August, what is the estimated raw m
at the end of July?
Raw material inventory balance
$ 257,250
