Question
SB Exercise E8-5 to E8-10 [The following information applies to the questions displayed below.] Shadee Corp. expects to sell 610 sun visors in May and
SB Exercise E8-5 to E8-10
[The following information applies to the questions displayed below.] Shadee Corp. expects to sell 610 sun visors in May and 300 in June. Each visor sells for $17. Shadees beginning and ending finished goods inventories for May are 80 and 40 units, respectively. Ending finished goods inventory for June will be 55 units.
E8-8 Preparing Cost of Goods Sold Budget [LO 8-3f]
Each visor requires a total of $4.50 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 33 closures on hand on May 1, 17 closures on May 31, and 22 closures on June 30 and variable manufacturing overhead is $1.50 per unit produced. Suppose that each visor takes 0.40 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 $1.40.) (Round your answer to 2 decimal places.)
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2. Compute the Shadees budgeted cost of goods sold for May and June. (Do not round your intermediate values. Use rounded cost per unit in intermediate calculations.)
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