MANAGERIAL ACCOUNTING F/MGRS.
6th Edition
ISBN: 9781264100590
Author: Noreen
Publisher: RENT MCG
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Chapter 8, Problem 8.1TF15
Morganton Company makes one product, and it provided the following information to help prepare the
LEARNING OBJECTIVES 8–2, 8–3, 8–4, 8–5, 8–7, 8–9, 8–10
- 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.
- 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.
- 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 $2.00 per pound.
- Thirty percent of raw materials purchases are paid for in the month of purchase and 70% in the following month.
- The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours.
- The variable selling and administrative expense per unit sold is $1.80. The fixed selling and administrative expense per month is$60,000.
Required:
- What are the budgeted sales for July?
- What are the expected cash collections for July?
- What is the accounts receivable balance at the end of July?
- According to the production budget, how many units should be produced in July?
- 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?
- What is the estimated cost of raw materials purchases for July?
- 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.
- What is the estimated accounts payable balance at the end of July?
- What is the estimated raw materials inventory balance at the end of July?
- What is the total estimated direct labor cost for July?
- If we assume there is no fixed manufacturing
overhead and the variable manufacturing overhead is $10 per direct labor-hour, what is the estimated unit product cost? - What is the estimated finished goods inventory balance at the end of July?
- What are the estimated cost of goods sold and gross margin for July?
- What is the estimated total selling and administrative expense for July?
- What is the estimated net operating income for July?
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Chapter 8 Solutions
MANAGERIAL ACCOUNTING F/MGRS.
Ch. 8 - Prob. 8.1QCh. 8 - Prob. 8.2QCh. 8 - Prob. 8.3QCh. 8 - Prob. 8.4QCh. 8 - Prob. 8.5QCh. 8 - Prob. 8.6QCh. 8 - Prob. 8.7QCh. 8 - Prob. 8.8QCh. 8 - Prob. 8.9QCh. 8 - Prob. 8.10Q
Ch. 8 - Prob. 8.1AECh. 8 - Morganton Company makes one product, and it...Ch. 8 - Prob. 8.1ECh. 8 - Prob. 8.2ECh. 8 - Prob. 8.3ECh. 8 - Prob. 8.4ECh. 8 - Prob. 8.5ECh. 8 - Prob. 8.6ECh. 8 - Prob. 8.7ECh. 8 - Prob. 8.8ECh. 8 - Prob. 8.9ECh. 8 - Prob. 8.10ECh. 8 - Prob. 8.11ECh. 8 - Prob. 8.12ECh. 8 - Prob. 8.13ECh. 8 - Prob. 8.14ECh. 8 - Prob. 8.15ECh. 8 - Prob. 8.16ECh. 8 - Prob. 8.17ECh. 8 - Prob. 8.18ECh. 8 - Prob. 8.19PCh. 8 - Prob. 8.20PCh. 8 - Prob. 8.21PCh. 8 - Prob. 8.22PCh. 8 - Prob. 8.23PCh. 8 - Prob. 8.24PCh. 8 - Prob. 8.25PCh. 8 - Prob. 8.26PCh. 8 - Prob. 8.27PCh. 8 - Prob. 8.28PCh. 8 - Prob. 8.29PCh. 8 - Prob. 8.30PCh. 8 - Prob. 8.31PCh. 8 - Prob. 8.32CCh. 8 - Prob. 8.33C
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