Question
Shadee Corp. expects to sell 570 sun visors in May and 370 in June. Each visor sells for $28. Shadees beginning and ending finished goods
Shadee Corp. expects to sell 570 sun visors in May and 370 in June. Each visor sells for $28. Shadees beginning and ending finished goods inventories for May are 85 and 55 units, respectively. Ending finished goods inventory for June will be 60 units.
Each visor requires a total of $5.50 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 33 closures on hand on May 1, 19 closures on May 31, and 23 closures on June 30 and variable manufacturing overhead is $2.50 per unit produced. Suppose that each visor takes 0.40 direct labor hours to produce and Shadee pays its workers $10 per hour.
QUESTIONS:
1. Determine Shadees budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $7.) (Round your answer to 2 decimal places.)
2. Compute the Shadees budgeted cost of goods sold for May and June. (Round your intermediate calculations to 2 decimal places. Round your answers to 2 decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started