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Shadee Corp. expects to sell 590 sun visors in May and 450 in June. Each visor sells for $20. Shadee's beginning and ending finished goods
Shadee Corp. expects to sell 590 sun visors in May and 450 in June. Each visor sells for $20. Shadee's beginning and ending finished goods inventories for May are 75 and 50 units, respectively. Ending finished goods inventory for June will be 55 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 $200 eachShadee wants to have 30 closures on hand on May 1. 17 closures on May 31, and 22 closures on June 30 and variable manufacturing overhead is $2.25 per unit produced. Suppose that each visor takes 0.30 direct labor hours to produce and Shadee pays its workers $8 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.
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