Parameters for the quiz on chapter 8: some have changed: Items a through h: Item a should read: "the budgeted selling price per unit is $77.00. Budgeted sales units for June, July, August, and September are 9,000, 10,000, 11,000, and 12,000 respectively". Items b, c, d, e, and f no change from the text. Item g should read: "the variable expense per unit is $1.80. The fixed selling and administration expense is $60,000 of which $10,000 is depreciation expense". Item 5 should read: "If 61,800 units of raw material are needed in August, how many pounds of raw material should be purchased in July"? Item 6 - no change Item 7 should read: "In July, what are the total estimated cash disbursements for raw material purchases if we assume the cost of raw material purchased in June is $93,000"? Items 8, 9 & 10: no changes. Item 11 should read. "if we assume that the fixed manufacturing overhead is $250,000 per month of which $50,000 is depreciation expense and the variable 5. If 61,000 pounds of raw materials are needed to meet production in August, how many pounds of raw materials should be purchased in July? 6. What is the estimated cost of raw materials purchases for July? 7. In July what are the total estimated cash disbursements for raw materials purchases? Assume the cost of raw material purchases in June is $88.880. 8. What is the estimated accounts payable balance at the end of July? 9. What is the estimated raw materials inventory balance at the end of July? 10. 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? a. Morganton Company makes one product and it provided the following information to help prepare the master budget: The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 8,400, 10,000, 12,000, and 13,000 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. 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 pro- duction needs. Each unit of finished goods requires 5 pounds of raw materials. The raw mate- rials cost $2.00 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 $15 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 $60,000 Parameters for the quiz on chapter 8: some have changed: Items a through h: Item a should read: "the budgeted selling price per unit is $77.00. Budgeted sales units for June, July, August, and September are 9,000, 10,000, 11,000, and 12,000 respectively". Items b, c, d, e, and f no change from the text. Item g should read: "the variable expense per unit is $1.80. The fixed selling and administration expense is $60,000 of which $10,000 is depreciation expense". Item 5 should read: "If 61,800 units of raw material are needed in August, how many pounds of raw material should be purchased in July"? Item 6 - no change Item 7 should read: "In July, what are the total estimated cash disbursements for raw material purchases if we assume the cost of raw material purchased in June is $93,000"? Items 8, 9 & 10: no changes. Item 11 should read. "if we assume that the fixed manufacturing overhead is $250,000 per month of which $50,000 is depreciation expense and the variable 5. If 61,000 pounds of raw materials are needed to meet production in August, how many pounds of raw materials should be purchased in July? 6. What is the estimated cost of raw materials purchases for July? 7. In July what are the total estimated cash disbursements for raw materials purchases? Assume the cost of raw material purchases in June is $88.880. 8. What is the estimated accounts payable balance at the end of July? 9. What is the estimated raw materials inventory balance at the end of July? 10. 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? a. Morganton Company makes one product and it provided the following information to help prepare the master budget: The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 8,400, 10,000, 12,000, and 13,000 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. 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 pro- duction needs. Each unit of finished goods requires 5 pounds of raw materials. The raw mate- rials cost $2.00 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 $15 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 $60,000