Shadee Corp. expects to sell 630 sun visors in May and 360 in June. Each visor s

Question

Shadee Corp. expects to sell 630 sun visors in May and 360 in June. Each visor sells for $20. Shadee’s beginning and ending finished goods inventories for May are 75 and 45 units, respectively. Ending finished goods inventory for June will be 60 units. d) Each visor requires a total of $3.50 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 33 closures on hand on May 1, 20 closures on May 31, and 27 closures on June 30 and variable manufacturing overhead is $1.25 per unit produced. Suppose that each visor takes 0.70 direct labor hours to produce and Shadee pays its workers $11 per hour. - Determine Shadee’s budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $1.30.) - Compute the Shadee’s budgeted cost of goods sold for May and June. e) Each visor requires a total of $3.50 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 33 closures on hand on May 1, 20 closures on May 31, and 27 closures on June 30. Additionally, Shadee’s fixed manufacturing overhead is $1,200 per month, and variable manufacturing overhead is $1.25 per unit produced. Each visor takes 0.70 direct labor hours to produce and Shadee pays its workers $11 per hour. Additional information: Selling costs are expected to be 6 percent of sales. Fixed administrative expenses per month total $1,200. - Determine Shadee's budgeted selling and administrative expenses for May and June. f) Each visor requires a total of $3.50 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 33 closures on hand on May 1, 20 closures on May 31, and 27 closures on June 30 and variable manufacturing overhead is $1.25 per unit produced. Suppose that each visor takes 0.70 direct labor hours to produce and Shadee pays its workers $11 per hour. Additional information: Selling costs are expected to be 6 percent of sales. Fixed administrative expenses per month total $1,200. - Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $1.30.)

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May June A Expected Sale (units) 630 360 B Begining Finished goods inventory 75 45 C Ending Finished goods inventory 45 60 A+C-B Hence Production 600 375

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