Murray Company has provided the following information so that it can prepare the master budget for...

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Murray Company has provided the following information so that it can prepare the master budget for its one product: 1. Selling price $70. Expected sales for January, February, March, and April are 8,400, 10,000, 12,000 and 13,000 units, respectively. There are no cash sales; all sales are on account (on credit). 2. 40% of sales are collected in the month of sale and sixty percent in the following month. 3. Budgeted finished goods ending inventories are twenty percent of the next month's unit sales. 4. Budgeted raw materials ending inventories are ten percent of the next month's RM production needs. Each finished goods unit is made with five pounds of raw materials, which cost two dollars per pound. 5. 30% of raw materials that Murray purchases are paid for in the month of purchase and seventy percent are paid in the following month. 6. Murray pays $15 per hour for direct labor. Answer the following questions: a. What are budgeted sales for February? $ b. What are the expected cash collections for February? $ c. What is the accounts receivable balance at the end of February? $ units d. How many units should be produced in February? e. If the month of March needs raw materials of 61,000 pounds to meet production, how many pounds punds of raw materials should be purchased in February? f. What is the budgeted cost of raw materials purchases for February? $ Murray Company has provided the following information so that it can prepare the master budget for its one product: 1. Selling price $70. Expected sales for January, February, March, and April are 8,400, 10,000, 12,000 and 13,000 units, respectively. There are no cash sales; all sales are on account (on credit). 2. 40% of sales are collected in the month of sale and sixty percent in the following month. 3. Budgeted finished goods ending inventories are twenty percent of the next month's unit sales. 4. Budgeted raw materials ending inventories are ten percent of the next month's RM production needs. Each finished goods unit is made with five pounds of raw materials, which cost two dollars per pound. 5. 30% of raw materials that Murray purchases are paid for in the month of purchase and seventy percent are paid in the following month. 6. Murray pays $15 per hour for direct labor. Answer the following questions: a. What are budgeted sales for February? $ b. What are the expected cash collections for February? $ c. What is the accounts receivable balance at the end of February? $ units d. How many units should be produced in February? e. If the month of March needs raw materials of 61,000 pounds to meet production, how many pounds punds of raw materials should be purchased in February? f. What is the budgeted cost of raw materials purchases for February? $

Answer rating: 100% (QA)

Solution a Budgeted sales for February 700000 Calculated as units to be sold x selling price 10000x7... View the full answer