Directions Below is information for Charlotte Company. Using this information, answer the

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Directions



Below is information for Charlotte Company. Using this information,
answer the following questions on the "Calculation" tab in the
file. Show your work and format appropriately.




Charlotte Company makes one product and it provided the following
information to help prepare the master budget:




A. The budgeted selling price per unit is $70.
Budgeted unit sales for June, July , August, and September are
8,400, 10,000, 12,000, and 13,000 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 20% 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. 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 $15 per hour. Each
unit of finished goods requires two direct labor-hours.



G. The variable selling and administrative expense per
unit sold is $1.80. The fixed selling and administrative expense
per month is $60,000.




Required:




5 If 61,000 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 In July what are the total estimated cash
disbursement for raw materials purchases? Assume the cost of raw
materials purchases in June is $88,880.


8 What is the estimated accounts payable balance at the
end of July?


9 What is the estimated raw materials inventory balance
at the end of July?


10 What is the total estimated direct labor cost for
July?


11 If we assume that there is no fixed manufacturing
overhead and the variable manufacturing overhead is $10 per direct
labor-hour, what is the estimated unit product cost?


12 What is the estimated finished goods inventory
balance at the end of July?


13 What is the estimated cost of goods sold and gross
margin for July?


14 What is the estimated total selling and
administrative expense for July?