Morganton Company makes one product and it provided the following information to help prepare the master budget:
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Question:
Morganton Company makes one product and it provided the following information to help prepare the master budget:
- The budgeted selling price per unit is $90. Budgeted unit sales for June, July, August, and September are 5,600, 17,000, 19,000, and 156,000 units, respectively. All sales are on credit.
- Forty percent of credit sales are collected in the month of the sale and 90% in the following month.
- The ending finished goods inventory equals 40% of the following month's unit sales.
- 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 $2.00 per pound.
- Thirty percent of raw materials purchases are paid for in the month of purchase and 80% in the following month.
- The direct labor wage rate is $17 per hour. Each unit of finished goods requires two direct labor-hours.
- The variable selling and administrative expense per unit sold is $1.70. The fixed selling and administrative expense per month is $67,000.
3. What is the accounts receivable balance at the end of July?
Related Book For
Introduction to Managerial Accounting
ISBN: 978-0078025792
7th edition
Authors: Peter Brewer, Ray Garrison, Eric Noreen
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