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 $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) 40% of credit sales are collected in the month of the sale and 60% in the following month.
C) The ending finished goods inventory equals 20% 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 $2.00 per pound.
E) 30% 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.
If the cost of raw materials purchases in June is $88,880, what are the estimated cash disbursements for raw materials purchases in July?