Shadee Corp. expects to sell 510 sun visors in May and 400 in June. Each visor...

Shadee Corp. expects to sell 510 sun visors in May and 400 in June. Each visor sells for $25. Shadee’s beginning and ending finished goods inventories for May are 70 and 55 units, respectively. Ending finished goods inventory for June will be 60 units.

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 $1.50 each. Shadee wants to have 25 closures on hand on May 1, 17 closures on May 31, and 27 closures on June 30. Additionally, Shadee’s fixed manufacturing overhead is $1,200 per month, and variable manufacturing overhead is $1.50 per unit produced.

Required:

1. Determine Shadee's budgeted cost of closures purchased for May and June.

2. Determine Shadee's budget manufacturing overhead for May and June.

Expert Solution

ekkarill92 answered 1 year ago

Shadee Corp. expects to sell 510 sun visors in May and 300 in June. Each visor...

Shadee Corp. expects to sell 510 sun visors in May and 300 in June. Each visor sells for $14. Shadee’s beginning and ending finished goods inventories for May are 65 and 55 units, respectively. Ending finished goods inventory for June will be 50 units. It expects the following unit sales for the third quarter: July 545 August 500 September 450 Sixty percent of Shadee’s sales are cash. Of the credit sales, 52 percent is collected in the month of the...

Shadee Corp. expects to sell 510 sun visors in May and 430 in June. Each visor...

Shadee Corp. expects to sell 510 sun visors in May and 430 in June. Each visor sells for $17. Shadee’s beginning and ending finished goods inventories for May are 80 and 40 units, respectively. Ending finished goods inventory for June will be 70 units. Each visor requires a total of $4.50 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 27 closures on hand...

Shadee Corp. expects to sell 540 sun visors in May and 400 in June. Each visor...

Shadee Corp. expects to sell 540 sun visors in May and 400 in June. Each visor sells for $23. Shadee’s beginning and ending finished goods inventories for May are 65 and 55 units, respectively. Ending finished goods inventory for June will be 65 units. Each visor requires a total of $5.00 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 29 closures on hand...

Shadee Corp. expects to sell 570 sun visors in May and 400 in June. Each visor sells for $14.

Shadee Corp. expects to sell 570 sun visors in May and 400 in June. Each visor sells for $14. Shadee’s beginning and ending finished goods inventories for May are 75 and 60 units, respectively. Ending finished goods inventory for June will be 65 units. 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 34 closures on hand...

Shadee Corp. expects to sell 600 sun visors in May and 330 in June. Each visor...

Shadee Corp. expects to sell 600 sun visors in May and 330 in June. Each visor sells for $19. Shadee’s beginning and ending finished goods inventories for May are 70 and 45 units, respectively. Ending finished goods inventory for June will be 65 units.It expects the following unit sales for the third quarter: July 560 August 470 September 460 Sixty percent of Shadee’s sales are cash. Of the credit sales, 52 percent is collected in the month...

Shadee Corp. expects to sell 500 sun visors in May and 340 in June. Each visor...

Shadee Corp. expects to sell 500 sun visors in May and 340 in June. Each visor sells for $25. Shadee’s beginning and ending finished goods inventories for May are 60 and 55 units, respectively. Ending finished goods inventory for June will be 60 units. 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 $1.50 each. Shadee wants to have 27 closures on hand...

Shadee Corp. expects to sell 590 sun visors in May and 300 in June. Each visor...

Shadee Corp. expects to sell 590 sun visors in May and 300 in June. Each visor sells for $16. Shadee’s beginning and ending finished goods inventories for May are 65 and 55 units, respectively. Ending finished goods inventory for June will be 60 units. It expects the following unit sales for the third quarter: July 500 August 490 September 450 Sixty percent of Shadee’s sales are cash. Of the credit sales, 52 percent is collected in the month of the...

Shadee Corp. expects to sell 590 sun visors in May and 440 in June. Each visor...

Shadee Corp. expects to sell 590 sun visors in May and 440 in June. Each visor sells for $25. Shadee’s beginning and ending finished goods inventories for May are 85 and 60 units, respectively. Ending finished goods inventory for June will be 50 units. Each visor requires a total of $4.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.50 each. Shadee wants to have 32 closures on hand...

Shadee Corp. expects to sell 560 sun visors in May and 320 in June. Each visor...

Shadee Corp. expects to sell 560 sun visors in May and 320 in June. Each visor sells for $18. Shadee’s beginning and ending finished goods inventories for May are 70 and 45 units, respectively. Ending finished goods inventory for June will be 70 units. It expects the following unit sales for the third quarter: July 545 August 490 September 440 Sixty percent of Shadee’s sales are cash. Of the credit sales, 50 percent is collected in the month of the...

Shadee Corp. expects to sell 630 sun visors in May and 380 in June. Each visor...

Shadee Corp. expects to sell 630 sun visors in May and 380 in June. Each visor sells for $17. Shadee’s beginning and ending finished goods inventories for May are 80 and 45 units, respectively. Ending finished goods inventory for June will be 50 units. It expects the following unit sales for the third quarter: July 545 August 470 September 440 Sixty percent of Shadee’s sales are cash. Of the credit sales, 52 percent is collected in the month of the...

Question