Detailed and full answers please Shadee Corp. expects to sell 620 sun visors in
ID: 2529549 • Letter: D
Question
Detailed and full answers please
Shadee Corp. expects to sell 620 sun visors in May and 320 in June. Each visor sells for $23. Shadee's beginning and ending finished goods inventories for May are 85 and 45 units, respectively. Ending finished goods inventory for June will be 55 units. value: Required information 2.00 points Required: 1. Determine Shadee's budgeted total sales for May and June. May June Budgeted Total Sales 2. Determine Shadee's budgeted production in units for May and June May June Budgeted Production (Units)Explanation / Answer
Solution:
Part 1 –
May
June
Budgeted Sales Units
620
320
Unit Selling Price
$23
$23
Budgeted Total Sales
$14,260
$7,360
Part 2 – Budgeted Production in units
May
June
Budgeted Sales Units
620
320
Plus: Desired Ending Inventory
45
55
Total Needs
665
375
Less: Estimated Beginning Inventory
85
45
Budgeted Production (Units)
580
330
Part 3 – Budgeted Cost of Closures Purchased
May
June
Budgeted Sales Units
620
320
Plus: Desired Ending Inventory
45
55
Total Needs
665
375
Less: Estimated Beginning Inventory
85
45
Budgeted Production (Units)
580
330
May
June
Budgeted Production (Units)
580
330
Required raw materials units per finished goods unit
1
1
Total Needs for Production
580
330
Plus: Desired Ending Inventory
18
24
Total Needs
598
354
Less: Estimated Beginning Inventory
29
18
Required Closures purchases in units
569
336
Unit Price of Closure
$2
$2
Budgeted Cost of Closures Purchased
$1,138
$672
Part 4 --- Budgeted Manufacturing Overhead
May
June
Budgeted Production (Units)
580
330
Variable Manufacturing Overhead per unit
$2.75
$2.75
Total Variable Manufacturing Overhead (A)
$1,595.00
$907.50
Fixed manufacturing overhead (B)
$1,000
$1,000
Budgeted Manufacturing Overhead (A+B)
$2,595.00
$1,907.50
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
Budgeted Sales Units
620
320
Unit Selling Price
$23
$23
Budgeted Total Sales
$14,260
$7,360
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