ACCT 2402 Introduction To Mangerial Accounting: Fall
Chpater 6
value:
10.00 points
Foundational 7-1
| Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations: |
| (a) | The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 8,400, 15,000, 17,000, and 18,000 units, respectively. All sales are on credit. |
| (b) | Thirty-percent of credit sales are collected in the month of the sale and 70% in the following month. |
| (c) | The ending finished goods inventory equals 30% of the following month’s unit sales. |
| (d) | 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 $2.50 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 $12 per hour. Each unit of finished goods requires two direct labor-hours. |
| (g) | The variable selling and administrative expense per unit sold is $1.60. The fixed selling and administrative expense per month is $65,000. |
| What are the budgeted sales for July? |
| Budgeted sales | $ [removed] |
2.
value:
10.00 points
Foundational 7-2
| Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations: |
| (a) | The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 9,900, 30,000, 32,000, and 33,000 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 30% of the following month’s unit sales. |
| (d) | The ending raw materials inventory equals 20% of the following month’s raw materials production needs. Each unit of finished goods requires 4 pounds of raw materials. The raw materials cost $2.50 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 $12 per hour. Each unit of finished goods requires two direct labor-hours. |
| (g) | The variable selling and administrative expense per unit sold is $1.90. The fixed selling and administrative expense per month is $69,000. |
| What are the expected cash collections for July? |
| Total cash collections | $ [removed] |
3.
value:
10.00 points
Foundational 7-3
| Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations: |
| (a) | The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 8,600, 17,000, 19,000, and 20,000 units, respectively. All sales are on credit. |
| (b) | Thirty-percent of credit sales are collected in the month of the sale and 70% 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 $2.40 per pound. |
| (e) | Thirty five-percent of raw materials purchases are paid for in the month of purchase and 65% in the following month. |
| (f) | The direct labor wage rate is $14 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 $67,000. |
| What is the accounts receivable balance at the end of July? |
| Accounts receivable | $ |
4.
value:
10.00 points
Foundational 7-4
| Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations: |
| (a) | The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 9,500, 26,000, 28,000, and 29,000 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 15% of the following month’s raw materials production needs. Each unit of finished goods requires 4 pounds of raw materials. The raw materials cost $2.40 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 $12 per hour. Each unit of finished goods requires two direct labor-hours. |
| (g) | The variable selling and administrative expense per unit sold is $1.50. The fixed selling and administrative expense per month is $65,000. |
| According to the production budget, how many units should be produced in July? |
| Required production | [removed] units |
5.
value:
10.00 points
Foundational 7-5
| Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations: |
| (a) | The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 9,300, 24,000, 26,000, and 27,000 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 30% of the following month’s unit sales. |
| (d) | The ending raw materials inventory equals 20% of the following month’s raw materials production needs. Each unit of finished goods requires 4 pounds of raw materials. The raw materials cost $2.50 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 $14 per hour. Each unit of finished goods requires two direct labor-hours. |
| (g) | The variable selling and administrative expense per unit sold is $1.90. The fixed selling and administrative expense per month is $63,000. |
| If 105,200 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 | [removed] pounds |
6.
value:
10.00 points
Foundational 7-6
| Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations: |
| (a) | The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 9,500, 26,000, 28,000, and 29,000 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 15% of the following month’s raw materials production needs. Each unit of finished goods requires 4 pounds of raw materials. The raw materials cost $2.40 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 $12 per hour. Each unit of finished goods requires two direct labor-hours. |
| (g) | The variable selling and administrative expense per unit sold is $1.50. The fixed selling and administrative expense per month is $65,000. |
| What is the estimated cost of raw materials purchases for July? |
| Cost of raw material purchases | $ |
7.
value:
10.00 points
Foundational 7-7
| Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations: |
| (a) | The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 8,200, 13,000, 15,000, and 16,000 units, respectively. All sales are on credit. |
| (b) | Thirty-percent of credit sales are collected in the month of the sale and 70% in the following month. |
| (c) | 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 production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.50 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 $14 per hour. Each unit of finished goods requires two direct labor-hours. |
| (g) | The variable selling and administrative expense per unit sold is $1.40. The fixed selling and administrative expense per month is $63,000. |
| If the cost of raw materials purchases in June is $119,800, what are the estimated cash disbursements for raw materials purchases in July? |
| Total cash disbursements | $ [removed] |
8.
value:
10.00 points
Foundational 7-8
| Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations: |
| (a) | The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 8,800, 19,000, 21,000, and 22,000 units, respectively. All sales are on credit. |
| (b) | Thirty-percent of credit sales are collected in the month of the sale and 70% in the following month. |
| (c) | 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 production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.40 per pound. |
| (e) | Twenty five-percent of raw materials purchases are paid for in the month of purchase and 75% in the following month. |
| (f) | The direct labor wage rate is $12 per hour. Each unit of finished goods requires two direct labor-hours. |
| (g) | The variable selling and administrative expense per unit sold is $2.00. The fixed selling and administrative expense per month is $69,000. |
| What is the estimated accounts payable balance at the end of July? |
| Accounts payable | $ [removed] |
9.
value:
10.00 points
Foundational 7-9
| Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations: |
| (a) | The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 8,400, 15,000, 17,000, and 18,000 units, respectively. All sales are on credit. |
| (b) | Thirty-percent of credit sales are collected in the month of the sale and 70% in the following month. |
| (c) | The ending finished goods inventory equals 30% of the following month’s unit sales. |
| (d) | 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 $2.50 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 $12 per hour. Each unit of finished goods requires two direct labor-hours. |
| (g) | The variable selling and administrative expense per unit sold is $1.60. The fixed selling and administrative expense per month is $65,000. |
| What is the estimated raw materials inventory balance at the end of July? |
| Raw material inventory balance | $ |
|
|
10.
value:
10.00 points
Foundational 7-10
| Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations: |
| (a) | The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 9,100, 22,000, 24,000, and 25,000 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 20% 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 4 pounds of raw materials. The raw materials cost $2.50 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 $12 per hour. Each unit of finished goods requires two direct labor-hours. |
| (g) | The variable selling and administrative expense per unit sold is $1.70. The fixed selling and administrative expense per month is $61,000. |
| 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? |
| Total direct labor cost | $ [removed] |
11.
value:
10.00 points
Foundational 7-11
| Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations: |
| (a) | The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 9,100, 22,000, 24,000, and 25,000 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 20% 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 4 pounds of raw materials. The raw materials cost $2.50 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 $12 per hour. Each unit of finished goods requires two direct labor-hours. |
| (g) | The variable selling and administrative expense per unit sold is $1.70. The fixed selling and administrative expense per month is $61,000. |
| If the company always uses an estimated predetermined plantwide overhead rate of $12 per direct labor-hour, what is the estimated unit product cost? (Round your answer to 2 decimal places.) |
| Unit product cost | $ [removed] |
2.
value:
10.00 points
Foundational 7-12
| Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations: |
| (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 $2.00 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 $1.50. The fixed selling and administrative expense per month is $64,000. |
| What is the estimated finished goods inventory balance at the end of July, if the company always uses an estimated predetermined plantwide overhead rate of $6 per direct labor-hour? |
| Ending finished goods inventory | $ [removed] |
13.
value:
10.00 points
Foundational 7-13
| Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations: |
| (a) | The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 9,000, 21,000, 23,000, and 24,000 units, respectively. All sales are on credit. |
| (b) | Thirty-percent of credit sales are collected in the month of the sale and 70% in the following month. |
| (c) | The ending finished goods inventory equals 30% of the following month’s unit sales. |
| (d) | 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 $2.70 per pound. |
| (e) | Twenty-percent of raw materials purchases are paid for in the month of purchase and 80% in the following month. |
| (f) | The direct labor wage rate is $14 per hour. Each unit of finished goods requires two direct labor-hours. |
| (g) | The variable selling and administrative expense per unit sold is $1.60. The fixed selling and administrative expense per month is $60,000. |
| What is the estimated cost of goods sold and gross margin for July, if the company always uses an estimated predetermined plantwide overhead rate of $8 per direct labor-hour? |
| Estimated cost of goods sold | $ | [removed] |
| Estimated gross margin | $ | [removed] |
|
|
||
14.
value:
10.00 points
Foundational 7-14
| Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations: |
| (a) | The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 8,900, 20,000, 22,000, and 23,000 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 20% 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 $2.50 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 $13 per hour. Each unit of finished goods requires two direct labor-hours. |
| (g) | The variable selling and administrative expense per unit sold is $1.50. The fixed selling and administrative expense per month is $70,000. |
| What is the estimated total selling and administrative expense for July? |
| Total selling and administrative expenses | $ [removed] |
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15.
value:
10.00 points
Foundational 7-15
| Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations: |
| (a) | The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 9,600, 27,000, 29,000, and 30,000 units, respectively. All sales are on credit. |
| (b) | Thirty-percent of credit sales are collected in the month of the sale and 70% in the following month. |
| (c) | The ending finished goods inventory equals 30% of the following month’s unit sales. |
| (d) | The ending raw materials inventory equals 20% of the following month’s raw materials production needs. Each unit of finished goods requires 4 pounds of raw materials. The raw materials cost $2.50 per pound. |
| (e) | Twenty five-percent of raw materials purchases are paid for in the month of purchase and 75% in the following month. |
| (f) | The direct labor wage rate is $13 per hour. Each unit of finished goods requires two direct labor-hours. |
| (g) | The variable selling and administrative expense per unit sold is $1.60. The fixed selling and administrative expense per month is $66,000. |
| What is the estimated net operating income for July, if the company always uses an estimated predetermined plantwide overhead rate of $9 per direct labor-hour? |
| Net operating income | $ [removed] |
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