Question
Required information SB Exercise E8-5 to E8-10 Skip to question [The following information applies to the questions displayed below.] Shadee Corp. expects to sell 550
Required information
SB Exercise E8-5 to E8-10
Skip to question
[The following information applies to the questions displayed below.]
Shadee Corp. expects to sell 550 sun visors in May and 320 in June. Each visor sells for $28. Shadees beginning and ending finished goods inventories for May are 80 and 55 units, respectively. Ending finished goods inventory for June will be 65 units.
E8-6 (Algo) Preparing Direct Materials Purchases and Manufacturing Overhead Budgets [LO 8-3c, e]
Each visor requires a total of $5.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 28 closures on hand on May 1, 17 closures on May 31, and 24 closures on June 30. Additionally, Shadees fixed manufacturing overhead is $1,000 per month, and variable manufacturing overhead is $0.75 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.
E8-7 (Algo) Preparing Direct Labor Budget [LO 8-3d]
Suppose that each visor takes 0.70 direct labor hours to produce and Shadee pays its workers $9 per hour.
Required:
Determine Shadee's budgeted direct labor cost for May and June. (Do not round your intermediate values. Round your answers to 2 decimal places.)
E8-8 (Algo) Preparing Cost of Goods Sold Budget [LO 8-3f]
Each visor requires a total of $5.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 28 closures on hand on May 1, 17 closures on May 31, and 24 closures on June 30 and variable manufacturing overhead is $0.75 per unit produced. Suppose that each visor takes 0.70 direct labor hours to produce and Shadee pays its workers $9 per hour.
Required:
1. Determine Shadees budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $6.)
2. Compute the Shadees budgeted cost of goods sold for May and June.
E8-10 (Algo) Preparing Budgeted Income Statement [LO 8-3h]
Each visor requires a total of $5.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 28 closures on hand on May 1, 17 closures on May 31, and 24 closures on June 30 and variable manufacturing overhead is $0.75 per unit produced. Suppose that each visor takes 0.70 direct labor hours to produce and Shadee pays its workers $9 per hour.
Additional information:
- Selling costs are expected to be 6 percent of sales.
- Fixed administrative expenses per month total $1,600.
Required:
Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $6.00.) (Do not round your intermediate calculations. Round your answers to 2 decimal places.)
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