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Shadee Corp. expects to sell 560 sun visors in May and 410 in June. Each visor sells for $26. Shadee's beginning and ending finished goods
Shadee Corp. expects to sell 560 sun visors in May and 410 in June. Each visor sells for $26. Shadee's beginning and ending finished goods inventories for May are 80 and 60 units, respectively. Ending finished goods inventory for June will be 55 units. 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 $2.00 each. Shadee wants to have 29 closures on hand on May 1, 19 closures on May 31, and 26 closures on June 30 and variable manufacturing overhead is $2.25 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 $3.) 2. Compute the Shadee's budgeted cost of goods sold for May and June. Complete this question by entering your answers in the tabs below
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