pters $8-10$

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$[$The following information applies to the questions displayed below.$]$

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 $8,300,14,000,16,000,$ and $17,000$ 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.

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\mathrm{.}00$ per pound.

e$.$ Forty percent of raw materials purchases are paid for in the month of purchase and $60\%$ 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 $$1\mathrm{.}50.$ The fixed selling and administrative expense per month is $$64,000.$

$5.$ If $81,250$ pounds of raw materials are needed to meet production in August, how many pounds of raw materials should be purchased in July?

Raw materials to be purchased

poundspters $8-10$

Saved

Help

$!$

Required information

$[$The following information applies to the questions displayed below.$]$

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 $8,300,14,000,16,000,$ and $17,000$ 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.

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\mathrm{.}00$ per pound.

e$.$ Forty percent of raw materials purchases are paid for in the month of purchase and $60\%$ 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 $$1\mathrm{.}50.$ The fixed selling and administrative expense per month is $$64,000.$

$5.$ If $81,250$ pounds of raw materials are needed to meet production in August, how many pounds of raw materials should be purchased in July?

Raw materials to be purchased

pounds