Question
14) Shadee Corp. expects to sell 600 sun visors in May and 330 in June. Each visor sells for $19. Shadees beginning and ending finished
14)
Shadee Corp. expects to sell 600 sun visors in May and 330 in June. Each visor sells for $19. Shadees beginning and ending finished goods inventories for May are 60 and 55 units, respectively. Ending finished goods inventory for June will be 70 units.
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 29 closures on hand on May 1, 19 closures on May 31, and 26 closures on June 30. Additionally, Shadees fixed manufacturing overhead is $900 per month, and variable manufacturing overhead is $1.00 per unit produced.
Required:
1. Determine Shadee's budgeted cost of closures purchased for May and June.
2. Determine Shadee's budget manufacturing overhead for May and June.
Required 1 Required 2 Determine Shadee's budgeted cost of closures purchased for May and June. (Round your answers to 2 decimal places.) \begin{tabular}{|l|c|c||} \hline \hline & May & June \\ \hline Budgeted Cost of Closures Purchased & & \\ \hline \end{tabular} Determine Shadee's budget manufacturing overhead for May and June. (Do not round your intermediate values. Round your answers to 2 decimal places.)Step by Step Solution
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