Morganton Company makes one product and it provided the following information to help prepare the master...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Morganton Company makes one product and it provided the following information to help prepare the master budget: a. 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. 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 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 $2.40 per pound. e. Thirty five percent of raw materials purchases are paid for in the month of purchase and 65% in the following month. f. The direct labor wage rate is $14 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 $67,000. 6. If 96,250 pounds of raw materials are needed to meet production in August, what is the estimated cost of raw materials purchases for July? Cost of raw materials to be purchased 6 ! Required information Part 6 of 11 [The following information applies to the questions displayed below.] 7.14 points Morganton Company makes one product and it provided the following information to help prepare the master budget: a. 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. 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 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 $2.40 per pound. eBook Print e. Thirty five percent of raw materials purchases are paid for in the month of purchase and 65% in the following month. References f. The direct labor wage rate is $14 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 $67,000. 7. In July what are the total estimated cash disbursements for raw materials purchases? Assume the cost of raw material purchases in June is $136,560; and $96,250 pounds of raw materials are needed to meet production in August. Total cash disbursements Check my work 8 ! Required information Part 8 of 11 [The following information applies to the questions displayed below.] 7.14 points Morganton Company makes one product and it provided the following information to help prepare the master budget: a. 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. 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 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 $2.40 per pound. eBook Print e. Thirty five percent of raw materials purchases are paid for in the month of purchase and 65% in the following month. References f. The direct labor wage rate is $14 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 $67,000. 9. If 96,250 pounds of raw materials are needed to meet production in August, what is the estimated raw materials inventory balance at the end of July? Raw material inventory balance Check my work 13 ! Required information Part 2 of 3 [The following information applies to the questions displayed below.] 7.14 points Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: eBook Print References Fixed Element Variable Element per Customer per Month Revenue Served $ 6,300 Actual Total for May $ 199,000 Employee salaries and wages $ 70,000 $ 1,700 $ 127,300 Travel expenses $ 620 $ 18,000 Other expenses $ 49,000 $ 46,100 When preparing its planning budget the company estimated that it would serve 30 customers per month; however, during May the company actually served 35 customers. 2. What amount of employee salaries and wages would be included in Adger's flexible budget for May? Amount of employee salaries and wages included in the flexible budget $ 129,500 Check my work 14 ! Required information Part 3 of 3 [The following information applies to the questions displayed below.] 7.18 points eBook Print References Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: Fixed Element Variable Element per Customer per Month Revenue Served $ 6,300 Actual Total for May $ 199,000 Employee salaries and wages $ 70,000 $ 1,700 $ 127,300 Travel expenses $ 620 $ 18,000 Other expenses $ 49,000 $ 46,100 When preparing its planning budget the company estimated that it would serve 30 customers per month; however, during May the company actually served 35 customers. 5. What net operating income would appear in Adger's flexible budget for May? Net operating income Check my work Morganton Company makes one product and it provided the following information to help prepare the master budget: a. 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. 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 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 $2.40 per pound. e. Thirty five percent of raw materials purchases are paid for in the month of purchase and 65% in the following month. f. The direct labor wage rate is $14 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 $67,000. 6. If 96,250 pounds of raw materials are needed to meet production in August, what is the estimated cost of raw materials purchases for July? Cost of raw materials to be purchased 6 ! Required information Part 6 of 11 [The following information applies to the questions displayed below.] 7.14 points Morganton Company makes one product and it provided the following information to help prepare the master budget: a. 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. 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 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 $2.40 per pound. eBook Print e. Thirty five percent of raw materials purchases are paid for in the month of purchase and 65% in the following month. References f. The direct labor wage rate is $14 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 $67,000. 7. In July what are the total estimated cash disbursements for raw materials purchases? Assume the cost of raw material purchases in June is $136,560; and $96,250 pounds of raw materials are needed to meet production in August. Total cash disbursements Check my work 8 ! Required information Part 8 of 11 [The following information applies to the questions displayed below.] 7.14 points Morganton Company makes one product and it provided the following information to help prepare the master budget: a. 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. 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 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 $2.40 per pound. eBook Print e. Thirty five percent of raw materials purchases are paid for in the month of purchase and 65% in the following month. References f. The direct labor wage rate is $14 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 $67,000. 9. If 96,250 pounds of raw materials are needed to meet production in August, what is the estimated raw materials inventory balance at the end of July? Raw material inventory balance Check my work 13 ! Required information Part 2 of 3 [The following information applies to the questions displayed below.] 7.14 points Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: eBook Print References Fixed Element Variable Element per Customer per Month Revenue Served $ 6,300 Actual Total for May $ 199,000 Employee salaries and wages $ 70,000 $ 1,700 $ 127,300 Travel expenses $ 620 $ 18,000 Other expenses $ 49,000 $ 46,100 When preparing its planning budget the company estimated that it would serve 30 customers per month; however, during May the company actually served 35 customers. 2. What amount of employee salaries and wages would be included in Adger's flexible budget for May? Amount of employee salaries and wages included in the flexible budget $ 129,500 Check my work 14 ! Required information Part 3 of 3 [The following information applies to the questions displayed below.] 7.18 points eBook Print References Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: Fixed Element Variable Element per Customer per Month Revenue Served $ 6,300 Actual Total for May $ 199,000 Employee salaries and wages $ 70,000 $ 1,700 $ 127,300 Travel expenses $ 620 $ 18,000 Other expenses $ 49,000 $ 46,100 When preparing its planning budget the company estimated that it would serve 30 customers per month; however, during May the company actually served 35 customers. 5. What net operating income would appear in Adger's flexible budget for May? Net operating income Check my work
Expert Answer:
Answer rating: 100% (QA)
It looks like youve included multiple images depicting accounting questions related to ... View the full answer
Related Book For
Introduction to Managerial Accounting
ISBN: 978-0078025792
7th edition
Authors: Peter Brewer, Ray Garrison, Eric Noreen
Posted Date:
Students also viewed these accounting questions
-
List the five fundamental standards of digital forensics (Module 1 Part 1 slides). Explain why each of these is important.
-
Corning-Howell reported taxable income in 2013 of $120 million. At December 31, 2013, the reported amount of some assets and liabilities in the financial statements differed from their tax bases as...
-
In a study of milk production in sheep (for use in making cheese), a researcher measured the 3-month milk yield for each of 11 ewes. The yields (liters) were as follows: (a) Determine the median and...
-
Look at Problem 58. What is the sum of the measures of the interior angles of any pentagon? Data from Problem 58 Show that the sum of the measures of the interior angles of any quadrilateral is 360...
-
Bolt Industries is facing increased competition and wants to borrow $10 million in cash to protect against future revenue shortfalls. Currently, long-term AA rates are 10%. Given its credit rating,...
-
a. Prepare the general journal entries required to record the following transactions in the general ledgers of the state, the County General Fund, and the County Tax Agency Fund. You may omit formal...
-
1. Electric potential is given by V=6x-8xy-8y+6yz - 4z Then magnitude of electric force acting on 2C point charge placed on origin will be :- (1) 2N (2) 6N (3) 8N (3) 8N (4) 20 N 2. Figure shows...
-
Marco Company shows the following costs for three jobs worked on in April. Job 306 Job 307 Job 308 $ 25,000 $ 43,000 21,000 10,500 16,000 8,000 Balances on March 31 Direct materials used (in March)...
-
A. n= n=4 n=3 n-2 n=1 B. n= n=4 n=3 n=2 n=1 1. Absorption 2. Emission 3. Ionization C. n= . n=4 n=3 n-2 n=1 n=x n=4 n=3 Classify each of the hydrogen atom transitions above. Put letters in...
-
Define Daniell - sacobi type galvanic cell. Give an example ( write a cell diagram ) . Explain how charge is transferred in such a galvanic cell ( how do electrons and ions carry charge ) .
-
The law of multiple proportions applies to two of more compounds of the same two or more ele- ments. Show that the following data support the law. Compound 1 Compound 2 % C 52.2 74.9 %H 13.0 25.1 %0...
-
A container is filled with fluid 1 and the apparent depth of the fluid is 5 cm. The container is next filled with fluid 2, and the apparent depth of this fluid is 4 cm. What is the ratio of the...
-
5. The net horizontal force on a box F as a function of the horizontal position x is shown. a) What is the work done on the box from x= 0 m to 5.0 m? b) What is the work done on the box from x = 0 m...
-
Write a paper about Sec rules on crowd funding "KICKSTARTER"
-
In a system with light damping (c < cc), the period of vibration is commonly defined as the time interval d = 2/d corresponding to two successive points where the displacement-time curve touches one...
-
Has the U.S. economy experienced inflation or deflation during recent recessions? Explain.
-
Inflation is soaring and employment is beginning to show sustained improvement. The unemployment rate is 6 percent, compared to its 3.5 percent rate prepandemic. The CPI grew 5.4 percent in June, and...
-
Explain how the Feds doubling of the monetarybase and government bailouts might influencethe short-run and long-run Phillips curves.Will the influence come fromchanges in the expected inflation rate,...
Study smarter with the SolutionInn App