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Required information (The following information applies to the questions displayed below.) Shadee Corp. expects to sell 620 sun visors in May and 430 in June.
Required information (The following information applies to the questions displayed below.) Shadee Corp. expects to sell 620 sun visors in May and 430 in June. Each visor sells for $24. Shadee's beginning and ending finished goods inventories for May are 70 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 $2.50 each. Shadee wants to have 27 closures on hand on May 1, 19 closures on May 31, and 25 closures on June 30 and variable manufacturing overhead is $0.75 per unit produced. Suppose that each visor takes 0.60 direct labor hours to produce and Shadee pays its workers $12 per hour. Required: 1. Determine Shadee's budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $4.) 2. Compute the Shadee's budgeted cost of goods sold for May and June. ! Required information [The following information applies to the questions displayed below.] Shadee Corp. expects to sell 620 sun visors in May and 430 in June. Each visor sells for $24. Shadee's beginning and ending finished goods inventories for May are 70 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 $2.50 each. Shadee wants to have 27 closures on hand on May 1, 19 closures on May 31, and 25 closures on June 30. Additionally, Shadee's fixed manufacturing overhead is $900 per month, and variable manufacturing overhead is $0.75 per unit produced. Each visor takes 0.60 direct labor hours to produce and Shadee pays its workers $12 per hour. Additional information: Selling costs are expected to be 9 percent of sales. Fixed administrative expenses per month total $1,600
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