80.2K

Verified Solution

Link Copied!

all of gaylord corporation's sales are on account. Thirty five percent of the sales on account are collected in the month following sale, and the remainder are collected in the second month following the sale. the following are budgeted sales data for the company

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 months unit sales.
(d)	The ending raw materials inventory equals 10% of the following months 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. Need the BOLD answers. 5. if 106,000 pounds of raw materials are needed to meet production for august, how many pounds of raw materials should be purchased in july. 6. What is the estimated cost of raw materials purchases for July? 7. In july what are the total estimated cash disbursements for raw material purchases? Assume the cost of raw materials purchases in june is 140352 9. What is the estimated raw material inventory balance at the end of july? 12. What is the estimated finished goods inventory balance at the end of july? 14. what is the estimated total selling and administrative expenses for July?

Answer & Explanation Solved by verified expert

See Answer