following information applies to the questions displayed below.] Shadee Corp. ex

Question

following information applies to the questions displayed below.]

Shadee Corp. expects to sell 570 sun visors in May and 340 in June. Each visor sells for $17. Shadee’s beginning and ending finished goods inventories for May are 85 and 55 units, respectively. Ending finished goods inventory for June will be 60 units.

Check Your Work- Microsoft Edge cancel This window shows what is corect and incorrect for the work you have completed so far Even If all of the work you have done so far ls correct, you may not have completed everything 200 points Each visor requires a total of $5.00 in direct materials that icludes 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 25 closures on June 30. Additionally, Shadee's ixed manufacturing overhead is $1,500 per month, and variable manufacturing overhead is $2.25 per unit produced. Required: 1. Determine Shadee's budgeted cast of closures purchased for May and June. Round your answers to 2 decimal places.) Answer is complete but not entirely correct. May Budgeted Cost of Closures Purchas 18.00S 14.00 2. Determine Shadee's budget manufacturing overhead for May and June. (Do not round your intermediate values. Round your answers to 2 decimal places.) 3 Answer is complete but not entirely correct. May June ,715 0D 23 15 4:14 PM O Type here to search 4/24/2018

Explanation / Answer

1. Closure purchase budget May June Expected Sales Unit 570 340 Closing inventory 55 60 Less: Beginning Inventory 85 55 Budgeted production units 540 345 Closure per unit of production 1 1 Closure units required for production 540 345 Add: Ending inventory 18 25 Less: Beginning inventory 27 18 Purchase of closures units 531 352 Cost per unit of closure $2 $2 Purchase budget of closures $1,062 $704 2.Manufacturing overhead budget May June Budgeted production units 540 345 Variable manufacturing overhead per unit $2.25 $2.25 Total variable manufacturing overhead (a) $1,215.00 $776.25 Fixed manufacturing overhead (b) $1,500.00 $1,500.00 Total manufacturing overhead budget (a+b) $2,715.00 $2,276.25

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