What is the estimated accounts payable balance

Assignment Help Financial Accounting
Reference no: EM13755574

Morganton Company makes one product and it provided the following information to help prepare the master budget for its first four months of operations:

a. 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 nd 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 cost $2.00 per pound.

e. Thirty-percent of raw materials purchases are paid for in the month of purchse 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.

Required:

1. What is the accounts receivable balance at the end of July?

2. If the cost of raw materials purchases in June is $88,880, what are the estimated cash disbursements for raw materials purchases in July?

3. What is the estimated accounts payable balance at the end of July?

4. What is the estimated raw materials inventory balance at the end of July?

5. 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?

6. If the company always uses an estimated predetermined plantwide overhead rate of $10 per direct labor-hour, what is the estimated unit product cost?

7. What is the estimated finished goods inventory balance at the end of July?

8. What is the estimated cost of goods sold and gross margin for July?

9. What is the estimated total selling and administrative expense for July?

10. What is the estimated net operating income for July?

Reference no: EM13755574

What is the present worth of the bonus package

A small internet company plans to offer its employees a salary enhancement package which has revenue sharing as its main component. Specifically, the company will set aside 1%

Discuss an instance where you failed to properly

The concept of relevance is critical to properly applying managerial accounting tools. As a practical matter, it is easier to understand than it is to apply. Think back on y

Calculate the net present value ignoring additional benefits

Calculate the net present value, ignoring the additional benefits described by Rick. Should the tow truck be purchased? Calculate the net present value, incorporating the addi

How profitable is a round trip trade

How profitable is a round trip trade? State the profitability either in percent or basis points. In the NY currency market, the exchange rate for the Australian dollar (AUD/U

Sales revenue needed for her business to breakeven

Daisy Childs has decided to start an? e-tail business which will sell doggie treat dispensers. Daisy will sell each unit for? $60, and will purchase the units from a foreign s

Use the minus sign to indicate cash outflows-cash payments

Staley Inc. reported the following data: Net income $280,000 Depreciation expense 48,000 Loss on disposal of equipment 19,520 Increase in accounts receivable 17,280 Increase i

Used as base for common sized balance sheet analysis

The total assets dollar amount is typically used as a base for a common sized balance sheet analysis? In general, managers prefer expenses as a percent of net sales to increas

Calculate mcdonnell-myers earnings per share for the year

McDonnell-Myer Corporation reported net income of $1,150 million. The company had 469 million common shares outstanding at January 1 and sold 42 million shares on Feb. 28. As

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd