Answer Happy

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. 40% 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. 40% of raw materials purchases are paid for in the month of purchase and 60% in the following month. £ 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 $1.50. The fixed selling and administrative expense per month is $64,000. Required: What are the expected cash collections for July? Total cash collections