Required information

The Foundational $15($Algo$)[$LO$8-2,$ LO$8-3,$ LO$8-4,$ LO$8-5,$ LO$8-7,$ LO$8-9,$ LO$8-10]$

$[$The following information applies to the questions displayed below.$]$

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 $$60.$ Budgeted unit sales for June, July, August, and September are $8,000,11,000,13,000,$ and $14,000$ 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\mathrm{.}20$ 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 $$12$ per hour. Each unit of finished goods requires two direct labor$-$hours.

g$.$ The variable selling and administrative expense per unit sold is $$1\mathrm{.}20.$ The fixed selling and administrative expense per month is $$61,000.$

Foundational $8-9($Algo$)$

$9.$ If $66,250$ pounds of raw materials are needed to meet production in August, what is the estimated raw materials inventory balance at the end of July?

Answer is complete but not entirely correct.

Raw material inventory balance

$$145,750$