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Posted on May 20, 2022

Required Information [The following Information applies to the questions displayed below.] Shadee Corp. expects to sell 640 sun visors In May and 430 In

Required Information [The following Information applies to the questions displayed below.] Shadee Corp. expects to sell 640 sun visors In May and 430 In June. Each visor sells for $19. Shadee's beginning and ending finished goods Inventories for May are 65 and 45 units, respectively. Ending finished goods Inventory for June will be 60 units. Suppose that each visor takes 0.50 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.) May June Budgeted Direct Labor Cost Required Information [The following Information applies to the questions displayed below.] Shadee Corp. expects to sell 640 sun visors In May and 430 In June. Each visor sells for $19. Shadee's beginning and ending finished goods Inventories for May are 65 and 45 units, respectively. Ending finished goods Inventory for June will be 60 units. Each visor requires a total of $5.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.50 each. Shadee wants to have 31 closures on hand on May 1, 20 closures on May 31, and 26 closures on June 30. Additionally, Shadee's fixed manufacturing overhead is $1,400 per month, and variable manufacturing overhead is $1.75 per unit produced. Each visor takes 0.50 direct labor hours to produce and Shadee pays Its workers $9 per hour. Additional Information: . Selling costs are expected to be 9 percent of sales. T Fixed administrative expenses per month total $1.600. Required: Determine Shadee's budgeted selling and administrative expenses for May and June. (Do not round your Intermediate calculations. Round your answers to 2 decimal places.) May June Budgeted Selling and Administrative Expenses Required Information [The following information applies to the questions displayed below.] Shadee Corp. expects to sell 640 sun visors in May and 430 in June. Each visor sells for $19. Shadee's beginning and ending finished goods Inventories for May are 65 and 45 units, respectively. Ending finished goods Inventory for June will be 60 units. Each visor requires a total of $5.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.50 each. Shadee wants to have 31 closures on hand on May 1, 20 closures on May 31, and 26 closures on June 30 and variable manufacturing overhead is $1.75 per unit produced. Suppose that each visor takes 0.50 direct labor hours to produce and Shadee pays Its workers $9 per hour. Additional Information: Selling costs are expected to be 9 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 $1.10.) (Do not round your intermediate calculations. Round your answers to 2 decimal places.) SHADEE CORP. Budgeted Income Statement May June Budgeted Sales S 12,180.00 S 8.170.00 Budgeted Gross Margin Budgeted Net Operating Income

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Q Determine Shadees budgeted direct labor cost for May and June Solution Particulars May June Budgeted Direct Labor Cost 279000 200250 All calculations are given below Shadee Corporation Production Budget in units for May and June Particulars May June Budgeted Sales Units 640 430 Add Ending Finished Goods Inventory 45 60 685 490 Less Beginning Finished Goods Inventory 65 45 Total Number of Units to be produced 620 445 Shadee Corporation Budgeted Direct Labor Cost for May and June Particulars May June Total Number of Units to be produced 620 445 Total Direct Labor Required 050 direct labor hours required for each unit of productionhours 310 223 Total Direct Labor Cost 9 per hour 279000 200250 Q Determine Shadees budgeted selling and administrative expenses for May and June Solution Particulars May June Budgeted Selling and Administrative Expenses 269440 233530 All calculations are given below Shadee Corporation Budgeted Selling and Administrative Expenses for May and June Particulars May June Budgeted Sales Units 640 430 Selling Price Per Unit 1900 1900 Budgeted Sales 1216000 817000 Budgeted Selling Costs 9 of sales 109440 73530 Fixed Administrative Expenses 1600 1600 Budgeted Selling and Administrative Expenses 269440 233530 Q Complete Shadees budgeted income statement for the months of May and June Solution Shadee Corporation Budgeted Income Statement for May and June Particulars May June Budgeted Sales 1216000 817000 Less Cost of Goods Sold WN 1 717161 485199 Budgeted Gross Margin 498839 331801 Less Budgeted Selling Administrative Expenses 269440 233530 Budgeted Net Operating Income 229399 98271 Working Notes 1 Calculation ... blur-text-image