Morganton Company makes one product and it provided the following information to help prepare the master budget for its

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Morganton Company Makes One Product And It Provided The Following Information To Help Prepare The Master Budget For Its 1 (96.84 KiB) Viewed 28 times

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 $70. Budgeted unit sales for June, July, August, and September are 9,400, 25,000, 27,000, and 28,000 units, respectively. All sales are on credit. b. 30% of credit sales are collected in the month of the sale and 70% 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 4 pounds of raw materials. The raw materials cost $2.50 per pound. e. 20% of raw materials purchases are paid for in the month of purchase and 80% in the following month. f. The direct labour wage rate is $15 per hour. Each unit of finished goods requires two direct labour-hours. g. The variable selling and administrative expense per unit sold is $2.00. The fixed selling and administrative expense per month is $64,000. Required: What are the expected cash collections for July? Total cash collections