Shadee Corp. expects to sell 600 sun visors in May and 800 in June. Each visor sells for $18. Shadees beginning and ending finished goods inventories for May are 75 and 50 units, respectively. Ending finished goods inventory for June will be 60 units.

A.

Required:

1. Determine Shadee's budgeted total sales for May and June.

	May	June
Budgeted Total Sales	$10,800	$14,400

2. Determine Shadee's budgeted production in units for May and June.

	May	June
Budgeted Production (Units)	575	810

B.

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 $1.50 each. Shadee wants to have 30 closures on hand on May 1, 20 closures on May 31, and 25 closures on June 30. Additionally, Shadees fixed manufacturing overhead is $1,000 per month, and variable manufacturing overhead is $1.25 per unit produced.

Required:

1. Determine Shadee's budgeted cost of closures purchased for May and June. (Round your answers to 2 decimal places.)

	May	June
Budgeted Cost of Closures Purchased	$847.50	$1,222.50

2. Determine Shadee's budget manufacturing overhead for May and June. (Do not round your intermediate calculations. Round your answers to 2 decimal places.)

	May	June
Budgeted Manufacturing Overhead	$1,718.75	$2,012.50

C.

Suppose that each visor takes 0.30 direct labor hours to produce and Shadee pays its workers $9 per hour.

Required:

Determine Shadee's budgeted direct labor cost for May and June. (Do not round your intermediate calculations. Round your answers to 2 decimal places.)

	May	June
Budgeted Direct Labor Cost

HintsReferenceseBook & Resources

Hint #1

Check my work

D.

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 $1.50 each. Shadee wants to have 30 closures on hand on May 1, 20 closures on May 31 and 25 closures on June 30 and variable manufacturing overhead is $1.25 per unit produced. Suppose that each visor takes 0.30 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 $2.) (Round your answer to 2 decimal places.)

Manufacturing Cost per Unit

2. Determine Shadee's budgeted cost of goods sold for May and June. (Do not round your intermediate calculations. Use rounded cost per unit in intermediate calculations.)

	May	June
Budgeted Cost of Goods Sold

E.

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 $1.50 each. Shadee wants to have 30 closures on hand on May 1, 20 closures on May 31, and 25 closures on June 30. Additionally, Shadees fixed manufacturing overhead is $1,000 per month, and variable manufacturing overhead is $1.25 per unit produced. Each visor takes 0.30 direct labor hours to produce and Shadee pays its workers $9 per hour.

Additional information:

Selling costs are expected to be 6 percent of sales.

Fixed administrative expenses per month total $1,200.

Required:

Determine Shadee's budgeted selling and administrative expenses for May and June.

	May	June
Budgeted Selling and Administrative Expenses