Answer: $215,000
Added by Henry M.
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Morganton Company makes one product and has provided the following information to help prepare the master budget for its first four months of operations: The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 8,700, 18,000, 20,000, and 21,000 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 30% of the following month's unit sales. The ending raw materials inventory equals 20% of the following month's raw materials production needs. Each unit of finished goods requires 5 kilograms of raw materials. The raw materials cost $2.00 per kilogram. Forty percent of raw materials purchases are paid for in the month of purchase and 60% 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 $1.90. The fixed selling and administrative expense per month is $68,000. According to the production budget, how many units should be produced in July? Required production units
Patha S.
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 $65. Budgeted unit sales for June, July, August, and September are 9300, 24,000, 26,000, and 27,000 units, respectively. All sales are on credit.B. 40% of credit sales are collected in the month of the sale in 60% in the following month.C. The ending finished goods inventory equals 30% of the following months unit sales.D. The ending Royal materials inventory equals 20% of the following months from materials produced production needs. Each unit of finished goods requires 4 pounds of raw materials. The raw materials cost $2.50 per pound.E. 30% of all 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 to 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 $63,000.3) what is the account receivable balance at the end of July?5) 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?
Adi S.
Marcelino Co.'s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are $500,000, and factory payroll cost in April is $363,000. Overhead costs incurred in April are: indirect materials, $50,000; indirect labor, $23,000; factory rent, $32,000; factory utilities, $19,000; and factory equipment depreciation, $51,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $635,000 cash in April. Costs of the three jobs worked on in April follow. Required: 1. Determine the total of each production cost incurred for April (direct labor, direct materials, and applied overhead) and the total cost assigned to each job (including the balances from March 31). 2. Prepare journal entries for the month of April to record the following: a. Materials purchases (on credit). b. Direct materials used in production. c. Direct labor paid and assigned to Work in Process Inventory. d. Indirect labor paid and assigned to Factory Overhead. e. Overhead costs applied to Work in Process Inventory. f. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.) g. Transfer of Jobs 306 and 307 to Finished Goods Inventory. h. Cost of goods sold for Job 306. i. Revenue from the sale of Job 306. j. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.) 3. Prepare a schedule of cost of goods manufactured. 4. Compute gross profit for April. Show how to present the inventories on the April 30 balance sheet. Analysis Component: 5. The over- or under-applied overhead is closed to Cost of Goods Sold. Discuss how this adjustment impacts business decision making regarding individual jobs or batches of jobs.
Manasvee S.
Recommended Textbooks
Horngren’s Cost Accounting
Cost Accounting A Managerial Emphasis
Principles of Accounting Volume 1: Financial Accounting
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