Shadee Corp. expects to sell 560 sun visors in May and 370 in June. Each visor s
ID: 2513749 • Letter: S
Question
Shadee Corp. expects to sell 560 sun visors in May and 370 in June. Each visor sells for $16. Shadee's beginning and ending finished goods inventories for May are 65 and 50 units, respectively. Ending finished goods inventory for June will be 60 units. value Required informatlon 0.50 points Requirecd 1. Determine Shadee's budgeted total sales for May and June. May June Budgeted Total Sales 8,960 5,920 2. Determine Shadee's budgeted production in units for May and June. May June Budgeted Production (Units)545 380Explanation / Answer
Solution:
Part 1 – Budgeted Cost of Closures purchased
May
June
a
Expected Sales Unit
560.00
370.00
b
Plus: Ending Inventory of visor
50.00
60.00
c = a+b
Total needs
610.00
430.00
d
Less: Beginning Inventory of visor
65.00
50.00
e = c-d
Budgeted Production Units
545.00
380.00
f
Require Raw material closures per unit ($4/2)
2.00
2.00
g = e+f
Total Closures required
1090.00
760.00
h
Plus: Ending Closures Unit
21.00
21.00
I = g+h
Total Needs
1111.00
781.00
J
Less: Beginning Closure Unit
35.00
21.00
K =(I - J)
Required Purchase of Closure in unit
1076.00
760.00
L
Cost of Closure per unit
$2.00
$2.00
K*L
Budgeted Cost of Closures Purchases
$2,152.00
$1,520.00
Part 2 – Budgeted Manufacturing Overhead
Budeted Manufacturing Overhead
May
June
a
Budgeted Production Units (From part 1)
545
380
b
Variable Manufacturing Overhead Rate per production unit
$2.50
$2.50
c = a*b
Variable Manufacturing Overhead
$1,362.50
$950.00
d
Fixed Manufacturing Overhead per month
$900
$900
c+d
Total Budgeted Manufacturing Overhead
$2,262.50
$1,850.00
Part 3 – Budgeted Direct labor Cost
Budgeted Direct Labor Cost
May
June
a
Budgeted Production Units (From part 1)
545
380
b
Direct labor hour needed per unit
0.2
0.2
c = a*b
Total Direct labor hours needed
109.000
76.000
d
Rate per Direct labor hour
$10
$10
c*d
Budgeted Direct labor cost
$119.00
$86.00
Part 4 --- Manufacturing Cost per unit
$$
Direct Material cost per unit
$4.00
Direct Labor Cost per unit (0.2 hrs per unit x $10)
$2.00
Variable Manufacturing Cost per unit
$2.50
Fixed Manufacturing Cost per unit
$1.30
Manufacturing Cost Per Unit
$9.80
Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you
Pls ask separate question for remaining parts.
May
June
a
Expected Sales Unit
560.00
370.00
b
Plus: Ending Inventory of visor
50.00
60.00
c = a+b
Total needs
610.00
430.00
d
Less: Beginning Inventory of visor
65.00
50.00
e = c-d
Budgeted Production Units
545.00
380.00
f
Require Raw material closures per unit ($4/2)
2.00
2.00
g = e+f
Total Closures required
1090.00
760.00
h
Plus: Ending Closures Unit
21.00
21.00
I = g+h
Total Needs
1111.00
781.00
J
Less: Beginning Closure Unit
35.00
21.00
K =(I - J)
Required Purchase of Closure in unit
1076.00
760.00
L
Cost of Closure per unit
$2.00
$2.00
K*L
Budgeted Cost of Closures Purchases
$2,152.00
$1,520.00
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