Question

Shadee Corp. expects to sell 620 sun visors in May and 310 in June. Each visor sells for $25. Shadee’s beginning and ending finished goods inventories for May are 85 and 45 units, respectively. Ending finished goods inventory for June will be 50 units.

11.

value:
0.50 points

Required information

Required:
1. Determine Shadee's budgeted total sales for May and June.



2. Determine Shadee's budgeted production in units for May and June.

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12.

value:
1.00 points

Required information

Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.00 each. Shadee wants to have 30 closures on hand on May 1, 19 closures on May 31, and 22 closures on June 30. Additionally, Shadee’s fixed manufacturing overhead is $1,400 per month, and variable manufacturing overhead is $2.75 per unit produced.

Required:
1. Determine Shadee's budgeted cost of closures purchased for May and June. (Round your answers to 2 decimal places.)



2. Determine Shadee's budget manufacturing overhead for May and June. (Do not round your intermediate values. Round your answers to 2 decimal places.)

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13.

value:
0.50 points

Required information

Suppose that each visor takes 0.70 direct labor hours to produce and Shadee pays its workers $11 per hour.

Required:
Determine Shadee's budgeted direct labor cost for May and June. (Do not round your intermediate values. Round your answers to 2 decimal places.)

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14.

value:
0.50 points

Required information

Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.00 each. Shadee wants to have 30 closures on hand on May 1, 19 closures on May 31, and 22 closures on June 30 and variable manufacturing overhead is $2.75 per unit produced. Suppose that each visor takes 0.70 direct labor hours to produce and Shadee pays its workers $11 per hour.         

Required:
1. Determine Shadee’s budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $1.90.) (Round your answer to 2 decimal places.)

  

2. Compute the Shadee’s budgeted cost of goods sold for May and June. (Do not round your intermediate values. Use rounded cost per unit in intermediate calculations.)

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Hint #1

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15.

value:
0.50 points

Required information

Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.00 each. Shadee wants to have 30 closures on hand on May 1, 19 closures on May 31, and 22 closures on June 30. Additionally, Shadee’s fixed manufacturing overhead is $1,400 per month, and variable manufacturing overhead is $2.75 per unit produced. Each visor takes 0.70 direct labor hours to produce and Shadee pays its workers $11 per hour.   

Additional information:

Selling costs are expected to be 9 percent of sales.

Fixed administrative expenses per month total $1,600.

Required:
Determine Shadee's budgeted selling and administrative expenses for May and June. (Do not round your intermediate calculations. Round your answers to 2 decimal places.)

Hints

References

eBook & Resources

Hint #1

Check my work

16.

value:
0.50 points

Required information

Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.00 each. Shadee wants to have 30 closures on hand on May 1, 19 closures on May 31, and 22 closures on June 30 and variable manufacturing overhead is $2.75 per unit produced. Suppose that each visor takes 0.70 direct labor hours to produce and Shadee pays its workers $11 per hour.        

Additional information:

Selling costs are expected to be 9 percent of sales.

Fixed administrative expenses per month total $1,600.

Required:
Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $1.90.) (Do not round your intermediate calculations. Round your answers to 2 decimal places.)

Answer 1

Required information is as prepared below:

1. Sales Budget
Shadee Corp
Sales Budget
Particulars	May	June	Total
Sale Units (a)	620	310	930
*Price per unit (b)	$25	$25	$25
Total Sales (a*b)	$15,500	$7,750	23,250
2. Production Budget
Shadee Corp
Production Budget
Particulars	May	June	Total
Sale Units (a)	620	310	930
Planned ending units (b)	45	50	50
Beginning units (c )	85	45	85
Planned production units (d)= (a+b-c)	580	315	895
3. Raw material Budget
Shadee Corp
Raw Material Purchase Budget
Particulars	May	June	Total
Planned production units (a)	580	315	895
*Direct Material required per unit (b)	4.0	4.0	4.0
Direct Material Required for production (c )	2,320	1,260	3,580
Budgeted ending Direct Material (d)	19	22	22
Beginning Direct Material (e )	30	19	30
Budgeted direct material purchase f= c+d-e	2,309	1,263	3,572
Cost per unit (g)	$2.0	$2.0	$2.0
BudgetedDM purchases	$4,618.00	$2,526.00	$7,144.00
4. Direct labour Budget
Shadee Corp
Manuafcturing Overhead
Particulars	May	June	Total
Unit Produced	580	315	895
Variable manufacturing costs (2.75 per unit)	1,595.0	866.3	2,461.3
Fixed manufacturing costs	1,400	1,400	2,800
Total manufacturing costs	2,995.00	2,266.25	5,261.25
Shadee Corp
Direct Labour Budget
	Month
Particulars	May	June	Total
Planned production units (a)	580	315	895
*Direct labour required per unit (b)	0.7	0.7	0.7
Budgeted Direct labour hours	406	221	627
Cost per direct labour hour	11	11	11
Budgeted Direct labour Cost	$4,466.00	$2,425.50	$6,891.50