Question
Shadee Corp. expects to sell 540 sun visors in May and 370 in June. Each visor sells for $20. Shadees beginning and ending finished goods
Shadee Corp. expects to sell 540 sun visors in May and 370 in June. Each visor sells for $20. Shadees beginning and ending finished goods inventories for May are 75 and 50 units, respectively. Ending finished goods inventory for June will be 50 units.
Suppose that each visor takes 0.70 direct labor hours to produce and Shadee pays its workers $8 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.)
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 30 closures on hand on May 1, 15 closures on May 31, and 26 closures on June 30 and variable manufacturing overhead is $1.50 per unit produced. Suppose that each visor takes 0.70 direct labor hours to produce and Shadee pays its workers $8 per hour. Required: 1. Determine Shadees budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $1.20.) (Round your answer to 2 decimal places.)
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.)
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 30 closures on hand on May 1, 15 closures on May 31, and 26 closures on June 30. Additionally, Shadees fixed manufacturing overhead is $1,400 per month, and variable manufacturing overhead is $1.50 per unit produced. Each visor takes 0.70 direct labor hours to produce and Shadee pays its workers $8 per hour. Additional information:
- Selling costs are expected to be 10 percent of sales.
- 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.)
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 30 closures on hand on May 1, 15 closures on May 31, and 26 closures on June 30 and variable manufacturing overhead is $1.50 per unit produced. Suppose that each visor takes 0.70 direct labor hours to produce and Shadee pays its workers $8 per hour. Additional information:
- Selling costs are expected to be 10 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 $1.20.) (Do not round your intermediate calculations. Round your answers to 2 decimal places.)
Shadee Corp. expects to sell 540 sun visors in May aand 370 in June. Each visor sells for S20. Shacee's beginning and ending finished goods inventories for May are 75 and 50 units, respectively. Ending finished goods inventory for June will be 50 unit 9.09 points Suppose that each visor takes 0.70 direct labor hours to produce and Shadee pays its workers $8 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 Acdtionaly, Shadee's closures Juna tivod araufacturing overheaad is $1.400 ner month, and varable mautachuring oveertead is $1.50 per unit croduced, Fach visor takas 0.70 arect labor hours to ornduce and Shedee pays Its workers S8 per bou 15 cosures on May 31, and 2 Additional infomation Selling oasts are exaected to be 10 percent af sales. Fixnd administrative expenses per month total S1,60. Requ hadee's budgeted seling and administrative expenses for May and June. (Do not round your intermediate calculations, Round yaur answers to 2 decimal places.) May June Budoated Selirg end Administratve Fxperses
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started