Question

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Shadee Corp. expects to sell 560 sun visors in May and 410 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 55 units.

1.

value:
10.00 points

Required information

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

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

Q2

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 on May 1, 23 closures on May 31, and 23 closures on June 30. Additionally, Shadee’s fixed manufacturing overhead is $1,000 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.)

q3

Suppose that each visor takes 0.20 direct labor hours to produce and Shadee pays its workers $7 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.)

Q4

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 on May 1, 23 closures on May 31, and 23 closures on June 30 and variable manufacturing overhead is $2.75 per unit produced. Suppose that each visor takes 0.20 direct labor hours to produce and Shadee pays its workers $7 per hour.         

Required:
1. Determine Shadee’s budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $1.70.) (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.)

Q5

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 on May 1, 23 closures on May 31, and 23 closures on June 30. Additionally, Shadee’s fixed manufacturing overhead is $1,000 per month, and variable manufacturing overhead is $2.75 per unit produced. Each visor takes 0.20 direct labor hours to produce and Shadee pays its workers $7 per hour.   

Additional information:

Selling costs are expected to be 10 percent of sales.

Fixed administrative expenses per month total $1,200.

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.)

Answer 1

1
	May	June
Sale Units	560	410
SP per Unit	17	17
Budgeted total sales	9,520	6,970
	May	June
Sale Units	560	410
Beginning Invenory	80	45
Ending Invenory	45	55
Budgeted production	525	420
Part2
1
	May	June
Budgeted production	525	420
Direct Material for each Closure	2.5	2.5
Rawmaterial Required	1,312.5	1,050
Ending Inventory	23	23
Beginning Inventory	29	23
Budgeted Unit of Closure Purchased	1,306.5	1,050
Price per Unit	2	2
budgeted cost of closures purchased	2,613	2,100
2
	May	June
Fixed manufacturing overhead	1,000	1,000
variable manufacturing overhead	1,444	1,155
Budget manufacturing overhead	2,443.75	2,155.00
Part3:
1
	May	June
Direct Labour Required	105	84
Cost of Labour per Hour	7	7
budgeted direct labor cost	735	588
Part4:
1
	May	June
Direct Material Cost	2,625	2,100
Direct Labour Cost	735	588
Variable Manufactiring Overhead	1,444	1,155
Fixed Manufactring Overhead	893	714
budgeted manufacturing cost	5,696	4,557
Number of Units	525	420
Budgeted manufacturing cost per Unit	10.85	10.85
2
	May	June
Sale Units	560	410
Budgeted manufacturing cost per Unit	10.85	10.85
Cost of goods sold	6,076.00	4,448.50
Part 5
	May	June
Fixed administrative expenses	1,200	1,200
Selling costs	952	697
Budgeted selling and administrative expenses	2,152	1,897

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