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Shadee Corp. expects to sell 580 sun visors in May and 330 in June. Each visor s

ID: 2475245 • Letter: S

Question

Shadee Corp. expects to sell 580 sun visors in May and 330 in June. Each visor sells for $19. Shadee’s beginning and ending finished goods inventories for May are 75 and 50 units, respectively. Ending finished goods inventory for June will be 65 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 on May 1, 18 closures on May 31, and 24 closures on June 30 and variable manufacturing overhead is $1.50 per unit produced. Suppose that each visor takes 0.70 direct labor hours to produce and Shadee pays its workers $8 per hour.

Determine Shadee’s budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $1.50.) (Round your answer to 2 decimal places.)

Shadee Corp. expects to sell 580 sun visors in May and 330 in June. Each visor sells for $19. Shadee’s beginning and ending finished goods inventories for May are 75 and 50 units, respectively. Ending finished goods inventory for June will be 65 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 on May 1, 18 closures on May 31, and 24 closures on June 30 and variable manufacturing overhead is $1.50 per unit produced. Suppose that each visor takes 0.70 direct labor hours to produce and Shadee pays its workers $8 per hour.

           Required: 1.

Determine Shadee’s budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $1.50.) (Round your answer to 2 decimal places.)

2. Compute the Shadee’s budgeted cost of goods sold for May and June. (Use rounded cost per unit in intermediate calculations.)

Explanation / Answer

You have to have 29 closures on May 1 and they each cost $2.00. Are you unable to multiply 29 * 2

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