Morganton Company makes one product and it provided the following information to help prepare the master budget for its first four months of operations:a. The budgeted selling price per unit is $70. Budgeted unit sales for June, July August and September are 8,400, 10,000 12,000 and 13,000 units, respectively, All sales are on credit.b. Forty percent of credit sales are collected in the month of the sale and sixty percent 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 percent of the following months raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials, The raw materials cost $2.00 per pound.e, Thirty percent of raw materials purchases are paid for in the month of purchase and 70% in the following month.f. The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor hours.g. The variable selling and administrative expense per unit sold is $1.80. The fixed selling and administrative expense per month is$ 60,000.1. What are the budgeted sales for July?2. What are the expected cash collections for July?3. What is the accounts receivable balance at the end of July?4. According to the production budget, how many units should be produced in July?5. If 61,000 pounds of raw materials are needed to meet production in 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. If the cost of raw material purchases in June is $88,880, what are the estimated cash disbursements for raw materials purchases in July?8. What is the estimated accounts payable balance at the end of July?9. What is the estimated raw materials inventory balance at the end of July?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?11. If the company always uses an estimated predetermined plantwide overhead rate of $10 per direct labor hour, what is the estimated unit product cost?12. What is the estimated finished good inventory balance at the end of July?13. What is the estimated cost of goods sold and gross margin for July?14. What is the estimated total selling and administrative expense of July?15. What is the estimated net operating income for July?1Unit salesSelling price per unitTotal sales2.June salesJulyJuly salesTotal Cash collections3July salesPercent collectedAccounts Receivable4Budgeted sales in unitsAdd desired ending inventoryTotal needsLess beginning inventoryRequired production5.Required production in unitsRaw materials needed per unitRaw materials needed to meet productionAdd desired ending raw materials inventoryTotal raw materials needsLess beginning raw materials inventoryRaw materials to be purchased6Raw materials to be purchased (pounds)Cost per poundCost of raw material purchases7June purchasesJulyJulyJuly purchasesTotal cash disbursements8July purchasesPercent unpaidAccounts Payable9Ending raw materials inventory (pounds)Cost per poundRaw material inventory balance10Required production in unitsDirect labor hours per unitTotal direct labor-hours neededDirect labor cost per hourTotal direct labor cost11Direct materialsDirect laborManufacturing overheadUnit product cost12Ending finished goods inventory in unitsUnit product costEnding finished goods inventory13Unit salesUnit product costEstimated cost of goods soldJulyQuantityCostPerpoundhourhourThe estimated gross margin for July:Total salesCost of goods soldEstimated Gross marginJuly14Budgeted unit salesVariable selling and administrativeexpense per unitTotal variable expenseFixed selling and adminisrative expensesTotal selling and administrative expenses15Gross marginSelling and administrative expensesNet operating incomeTotal1.2.3.