Each visor requires a total of $4.50 in direct materials that includes an adjust
ID: 2438669 • Letter: E
Question
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 31 closures on hand on May 1, 17 closures on May 31, and 27 closures on June 30 and variable manufacturing overhead is $1.00 per unit produced. Suppose that each visor takes 0.20 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 $2.00.) (Round your answer to 2 decimal places.) anufacturing Cost per Unit Required Information The following information applies to the questions displayed below.] 2, Compute the Shadee's budgeted cost of goods sold for May and June. (Do not round yc Shadee Corp. expects to sell 500 sun visors in May and 420 in June. Each visor sells for $16. Shadee's beginning and ending finished goods inventories for May are 85 and 50 units, respectively. Ending finished goods inventory for June will be 55 units. May June Budgeted Cost of Goods SoldExplanation / Answer
Part 1 Requirement 1
Manufacturing Cost per Visor
Material Cost
$ 4.50
Labor Cost
(11/1*0.2)
$ 2.20
Manufacturing Overheads
$ 1.00
Total Manufacturing Cost Per Visor
$ 7.70
Part 1 Requirement 2
Budgeted Cost of Goods sold
May
June
Material Cost
$ 2,250.00
$ 1,890.00
Labor Cost
$ 1,100.00
$ 924.00
Manufacturing Overheads
$ 500.00
$ 420.00
Cost of Goods Sold
$ 3,850.00
$ 3,234.00
Part 2
Calculation of Selling and Budgeted Administrative cost
May
June
(A)
Sales
$ 8,000.00
$ 6,720.00
B= (A*9%)
Selling Cost
$ 720.00
$ 604.80
(C )
Fixed Administrative Expense
$ 1,200.00
$ 1,200.00
D=(B+C)
Budgeted Selling and Administrative expense
$ 1,920.00
$ 1,804.80
Manufacturing Cost per Visor
Material Cost
$ 4.50
Labor Cost
(11/1*0.2)
$ 2.20
Manufacturing Overheads
$ 1.00
Total Manufacturing Cost Per Visor
$ 7.70
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