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Shadee Corp. expects to sell 620 sun visors in May and 430 in June. Each visor sells for $14. Shadees beginning and ending finished goods
Shadee Corp. expects to sell 620 sun visors in May and 430 in June. Each visor sells for $14. Shadees beginning and ending finished goods inventories for May are 70 and 50 units, respectively. Ending finished goods inventory for June will be 55 units.
E8-6 Preparing Raw Materials Purchases and Manufacturing Overhead Budgets [LO 8-3c, 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 $2.50 each. Shadee wants to have 31 closures on hand on May 1.18 closures on May 31, and 22 closures on June 30. Additionally, Shadee's fixed manufacturing overhead is $1,100 per month, and variable manufacturing overhead is $1.75 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 2. Determine Shadee's budget manufacturing overhead for May and June. (Do not round your intermediate values. Round your answers to 2 decimal places.) May June Budgeted Manufacturing OverheadStep by Step Solution
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