Answer:
Morganton Company
The total estimated cash disbursements for raw materials are:
$174,776.40
Explanation:
a) Data and Calculations:
Budgeted selling price per unit = $60
June July August September
Budgeted unit sales: 9,200 23,000 25,000 26,000
Ending finished goods 4,600 5,000 5,200
Units of goods sold 23,000 25,000 26,000
Units available for sale 27,600 30,000 31,200
Beginning finished goods 4,600 5,000 5,200
Units produced 25,400 26,200
Raw materials required 101,600 106,000
Ending raw materials inventory 10,600
Raw materials available 112,200
Beginning raw materials 10,160
Raw material purchases 102,040
Cost raw materials purchases $255,100 (102,040 * $2.50)
30% of purchases paid for $76,530 ($255,100 * 30%)
70% of June purchases 98,246.4 ($140,352 * 70%)
Cash disbursement of materials $174,776.40
