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Required information Skip to question [The following information applies to the questions displayed below.] Shadee Corp. expects to sell 550 sun visors in May and
Required information
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[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 $22. Shadees beginning and ending finished goods inventories for May are 85 and 50 units, respectively. Ending finished goods inventory for June will be 70 units.
Each visor requires a total of $4.00 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 35 closures on hand on May 1, 19 closures on May 31, and 25 closures on June 30. Additionally, Shadees fixed manufacturing overhead is $1,200 per month, and variable manufacturing overhead is $2.50 per unit produced. Each visor takes 0.60 direct labor hours to produce and Shadee pays its workers $7 per hour.
Additional information:
Selling costs are expected to be 8 percent of sales.
Fixed administrative expenses per month total $1,700.
Required information
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 $22. Shadees beginning and ending finished goods inventories for May are 85 and 50 units, respectively. Ending finished goods inventory for June will be 70 units.
Each visor requires a total of $4.00 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 35 closures on hand on May 1, 19 closures on May 31, and 25 closures on June 30. Additionally, Shadees fixed manufacturing overhead is $1,200 per month, and variable manufacturing overhead is $2.50 per unit produced. Each visor takes 0.60 direct labor hours to produce and Shadee pays its workers $7 per hour.
Additional information:
Selling costs are expected to be 8 percent of sales.
Fixed administrative expenses per month total $1,700.
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