Shadee Corp. expects to sell 610 sun visors in May and 450 in June. Each visor s

Question

Shadee Corp. expects to sell 610 sun visors in May and 450 in June. Each visor sells for $19. Shadee's beginning and ending finished goods inventories for May are 60 and 45 units, respectively. Ending finished goods inventory for June will be 55 units. References Section Break SB Exercise E8-5 to E8-10 2. 2.00 points value: Required information E8-6 Preparing Raw Materials Purchases and Manufacturing Overhead Budgets [LO 8-3c, e] 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 28 closures on hand on May 1, 22 closures on May 31, and 23 closures on June 30. Additionally, Shadee's fixed manufacturing overhead is $1,400 per month, and variable manufacturing overhead is $1.25 per unit produced. Required 1. Determine Shadee's budgeted cost of closures purchased for May and June. (Round your answers to 2 decimal places.)

Explanation / Answer

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May June Cost of closure purchases 1178 922

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