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Chpater 6
value:
10.
00 points
Foundational 7-1
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Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations: |
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(a) |
The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 8,400, 15,000, 17,000, and 18,000 units, respectively. All sales are on credit. |
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(b) |
Thirty-percent of credit sales are collected in the month of the sale and 70% in the following month. |
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(c) |
The ending finished goods inventory equals 30% of the following month’s unit sales. |
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(d) |
The ending raw materials inventory equals 20% of the following month’s raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.50 per pound. |
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(e) |
Thirty-percent of raw materials purchases are paid for in the month of purchase and 70% in the following month. |
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(f) |
The direct labor wage rate is $12 per hour. Each unit of finished goods requires two direct labor-hours. |
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(g) |
The variable selling and administrative expense per unit sold is $1.60. The fixed selling and administrative expense per month is $65,000. |
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What are the budgeted sales for July? |
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Budgeted sales |
$ [removed] |
2.
value: 10.00 points
Foundational 7-2
Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations:
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The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 9,900, 30,000, 32,000, and 33,000 units, respectively. All sales are on credit. |
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Forty-percent of credit sales are collected in the month of the sale and 60% in the following month. |
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The ending raw materials inventory equals 20% 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. |
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Forty-percent of raw materials purchases are paid for in the month of purchase and 60% in the following month. |
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The variable selling and administrative expense per unit sold is $1.90. The fixed selling and administrative expense per month is $69,000. |
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What are the expected cash collections for July? |
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Total cash collections |
$ |
[removed] |
3.
value: 10.00 points
Foundational 7-3
Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations:
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The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 8,600, 17,000, 19,000, and 20,000 units, respectively. All sales are on credit. |
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The ending finished goods inventory equals 25% of the following month’s unit sales. |
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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 $2.40 per pound. |
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Thirty five-percent of raw materials purchases are paid for in the month of purchase and 65% in the following month. |
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The direct labor wage rate is $14 per hour. Each unit of finished goods requires two direct labor-hours. |
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The variable selling and administrative expense per unit sold is $1.80. The fixed selling and administrative expense per month is $67,000. |
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What is the accounts receivable balance at the end of July? |
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Accounts receivable |
4.value: 10.00 points
Foundational 7-4
Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations:
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The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 9,500, 26,000, 28,000, and 29,000 units, respectively. All sales are on credit. |
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The ending raw materials inventory equals 15% of the following month’s raw materials production needs. Each unit of finished goods requires 4 pounds of raw materials. The raw materials cost $2.40 per pound. |
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The variable selling and administrative expense per unit sold is $1.50. The fixed selling and administrative expense per month is $65,000. |
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According to the production budget, how many units should be produced in July? |
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Required production |
[removed] units |
5.value: 10.00 points
Foundational 7-5
Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations:
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The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 9,300, 24,000, 26,000, and 27,000 units, respectively. All sales are on credit. |
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The variable selling and administrative expense per unit sold is $1.90. The fixed selling and administrative expense per month is $63,000. |
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If 105,200 pounds of raw materials are needed to meet production in August, how many pounds of raw materials should be purchased in July? |
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Raw materials to be purchased |
[removed] pounds |
6.value: 10.00 points
Foundational 7-6
Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations: (a)The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 9,500, 26,000, 28,000, and 29,000 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 25% of the following month’s unit sales.(d)The ending raw materials inventory equals 15% of the following month’s raw materials production needs. Each unit of finished goods requires 4 pounds of raw materials. The raw materials cost $2.40 per pound.(e)Forty-percent of raw materials purchases are paid for in the month of purchase and 60% in the following month.(f)The direct labor wage rate is $12 per hour. Each unit of finished goods requires two direct labor-hours.(g)The variable selling and administrative expense per unit sold is $1.50. The fixed selling and administrative expense per month is $65,000.
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What is the estimated cost of raw materials purchases for July? |
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Cost of raw material purchases |
7.value: 10.00 points
Foundational 7-7
Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations:
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The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 8,200, 13,000, 15,000, and 16,000 units, respectively. All sales are on credit. |
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The ending finished goods inventory equals 20% of the following month’s unit sales. |
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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 $2.50 per pound. |
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The variable selling and administrative expense per unit sold is $1.40. The fixed selling and administrative expense per month is $63,000. |
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If the cost of raw materials purchases in June is $119,800, what are the estimated cash disbursements for raw materials purchases in July? |
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Total cash disbursements |
$ [removed] |
8.value: 10.00 points
Foundational 7-8
Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations:
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The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 8,800, 19,000, 21,000, and 22,000 units, respectively. All sales are on credit. |
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Twenty five-percent of raw materials purchases are paid for in the month of purchase and 75% in the following month. |
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The variable selling and administrative expense per unit sold is $2.00. The fixed selling and administrative expense per month is $69,000. |
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What is the estimated accounts payable balance at the end of July? |
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Accounts payable |
$ [removed] |
9.value: 10.00 points
Foundational 7-9
Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations: (a)The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 8,400, 15,000, 17,000, and 18,000 units, respectively. All sales are on credit.(b)Thirty-percent of credit sales are collected in the month of the sale and 70% in the following month.(c)The ending finished goods inventory equals 30% of the following month’s unit sales.(d)The ending raw materials inventory equals 20% of the following month’s raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.50 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 $12 per hour. Each unit of finished goods requires two direct labor-hours.(g)The variable selling and administrative expense per unit sold is $1.60. The fixed selling and administrative expense per month is $65,000.
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What is the estimated raw materials inventory balance at the end of July? |
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Raw material inventory balance |
10.value: 10.00 points
Foundational 7-10
Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations:
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The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 9,100, 22,000, 24,000, and 25,000 units, respectively. All sales are on credit. |
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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. |
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The variable selling and administrative expense per unit sold is $1.70. The fixed selling and administrative expense per month is $61,000. |
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What is the total estimated direct labor cost for July assuming the direct labor workforce is adjusted to match the hours required to produce the forecasted number of units produced? |
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Total direct labor cost |
11.
value: 10.00 points
Foundational 7-11
Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations: (a)The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 9,100, 22,000, 24,000, and 25,000 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 4 pounds of raw materials. The raw materials cost $2.50 per pound.(e)Forty-percent of raw materials purchases are paid for in the month of purchase and 60% in the following month.(f)The direct labor wage rate is $12 per hour. Each unit of finished goods requires two direct labor-hours.(g)The variable selling and administrative expense per unit sold is $1.70. The fixed selling and administrative expense per month is $61,000.
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If the company always uses an estimated predetermined plantwide overhead rate of $12 per direct labor-hour, what is the estimated unit product cost? (Round your answer to 2 decimal places.) |
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Unit product cost |
check my work
references
2.value: 10.00 points
Foundational 7-12
Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations:
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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. |
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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. |
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The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours. |
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The variable selling and administrative expense per unit sold is $1.50. The fixed selling and administrative expense per month is $64,000. |
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What is the estimated finished goods inventory balance at the end of July, if the company always uses an estimated predetermined plantwide overhead rate of $6 per direct labor-hour? |
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Ending finished goods inventory |
13.
value: 10.00 points
Foundational 7-13
Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations:
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The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 9,000, 21,000, 23,000, and 24,000 units, respectively. All sales are on credit. |
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The ending raw materials inventory equals 20% of the following month’s raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.70 per pound. |
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Twenty-percent of raw materials purchases are paid for in the month of purchase and 80% in the following month. |
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The variable selling and administrative expense per unit sold is $1.60. The fixed selling and administrative expense per month is $60,000. |
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What is the estimated cost of goods sold and gross margin for July, if the company always uses an estimated predetermined plantwide overhead rate of $8 per direct labor-hour? |
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Estimated cost of goods sold |
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Estimated gross margin |
14.
value: 10.00 points
Foundational 7-14
Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations:
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The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 8,900, 20,000, 22,000, and 23,000 units, respectively. All sales are on credit. |
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The direct labor wage rate is $13 per hour. Each unit of finished goods requires two direct labor-hours. |
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The variable selling and administrative expense per unit sold is $1.50. The fixed selling and administrative expense per month is $70,000. |
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What is the estimated total selling and administrative expense for July? |
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Total selling and administrative expenses |
check my workreferencesebook & resources
15.
value: 10.00 points
Foundational 7-15
Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations:
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The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 9,600, 27,000, 29,000, and 30,000 units, respectively. All sales are on credit. |
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The variable selling and administrative expense per unit sold is $1.60. The fixed selling and administrative expense per month is $66,000. |
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What is the estimated net operating income for July, if the company always uses an estimated predetermined plantwide overhead rate of $9 per direct labor-hour? |
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Net operating income |
