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 9,200, 23,000, 25,000, and 26,000 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 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. 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 $13 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 $62,000. 13. If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $8 per direct labor- hour, what is the estimated cost of goods sold and gross margin for July? Estimated cost of goods sold Estimated gross margin 14. What is the estimated total selling and administrative expense for July? Total selling and administrative expenses 15. If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $8 per direct labor- hour, what is the estimated net operating income for July? Net operating income 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 9,200, 23,000, 25,000, and 26,000 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 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. 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 $13 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 $62,000. 13. If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $8 per direct labor- hour, what is the estimated cost of goods sold and gross margin for July? Estimated cost of goods sold Estimated gross margin 14. What is the estimated total selling and administrative expense for July? Total selling and administrative expenses 15. If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $8 per direct labor- hour, what is the estimated net operating income for July? Net operating income
Expert Answer:
Answer rating: 100% (QA)
Solution 13 Computation of estimated cost of goods sold and gross margin for ... 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
-
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....
-
Morganton Company makes one product and it provided the following information to help prepare the master budget: The budgeted selling price per unit is $65. Budgeted unit sales for June, July,...
-
Petrini Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations: The budgeted selling price per unit is $110....
-
Prepare journal entries to record each of the following sales transactions for the sales company. The company uses a perpetual inventory system and the gross method. 1. April 1st Sold for $3,000,...
-
The Alexandria division of Atkinson Company just purchased an asset for $120,000. The asset has a 3-year life. Atkinsons top management evaluates Lisa LaVilla, manager of the Alexandria division,...
-
Who can conduct cost audit under the Companies Act, 2013?
-
The efficiency of self-locking machine is less than 50%. True or False
-
Use the following GSS data on fear, race, and home ownership for this exercise. Variables measure respondents race, whether the respondent fears walking alone at night, and his or her home ownership....
-
Banjo Education Corp. issued a 4%, $80,000 bond that pays interest semiannually each June 30 and December 31. The date of issuance was January 1, 2020. The bonds mature after four years. The market...
-
Mr. M has been employed as an engineer by A Ltd., a company incorporated in Hong Kong. During the year ended 31 March 2019, Mr. M had the following income and expenditure. A monthly salary of...
-
Consider an economy consisting of a constant population of infinitely-lived individuals. The representative individual maximizes the expected value of Ct-x(C+2C+St+3) (1+p)t where p > 0 and x > 0 are...
-
Restrictions on the numbers and kinds of products that may enter into a n ation. a. comity b. transnational ins titutions c. General Agreement on Tariffs a nd Trade d. World Trade O rganization e....
-
A broad category of violations of the rights of individuals. a. conversion b. contributory ne gligence c. defamation d. liability e. libel f. negligence g. nuisance h. slander i. tort j. vicarious l...
-
The ability of a party to make a contract. a. abandonment b. age of majority c. contractual c apacity d. competent pa rty e. disaffi rmance f. emancipation g. incompetency h. minor i. necessaries j....
-
Indicate whether each of the following statements is true or false by writing T or F in t he a nswer c olumn. The tort of conversion is concerned with acts that deny a person the possession of his or...
-
An organization that provides protection against large fl uctuations in the value of one currency versus another. a. comity b. transnational ins titutions c. General Agreement on Tariffs a nd Trade...
-
Explain how U.S. exports and imports each affect domestic production.
-
The roof of a refrigerated truck compartment is of composite construction, consisting of a layer of foamed urethane insulation (t2 = 50 mm, ki = 0.026 W/m K sandwiched between aluminum alloy panels...
-
Diego Company manufactures one product that is sold for $80 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations...
-
Cane Company manufactures two products called Alpha and Beta that sell for $120 and $80, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the...
-
Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates Activity Cost Pool...
-
An amorphous material is: (a) Mica (b) Lead (c) Rubber (d) Glass
-
Discuss the application vernier caliper and its method of measurement.
-
In center lathe, cutting tool is fed in ____ directions with reference to the lathe axis.
Study smarter with the SolutionInn App