Question

Required information [The following information applies to the questions displayed below.] of 15 Morganton Company makes one product and it provided the following information to help prepare the master budget: Bock a. The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 8,200, 12,000, 14,000, and 15.000 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 $2.00 per pound. e. Twenty percent of raw materials purchases are paid for in the month of purchase and 80% in the following month, 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 $130. The fixed selling and administrative expense per month is $62,000. References 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?

Answer 1

B working Amount (S) А 1 Particular 2 Budget unit for july 3 Add: estimated ending inventory units 14000X40% 12000 5600 17600 4800 224001 2 12000x40% 5 Less: estimated begining inventory units 6 Required production unit for july (A) 7 Direct labour per unit (B) 8 Direct labour cost per hour (C) 9 Total direct labour cost for july (AXBXC) 13 582400