Shadee Corp. expects to sell 650 sun visors in May and 440 in June. Each visor sells for $22. Shadees beginning and ending finished goods inventories for May are 75 and 45 units, respectively. Ending finished goods inventory for June will be 60 units.

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

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

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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 $2.00 each. Shadee wants to have 27 closures on hand on May 1, 18 closures on May 31, and 24 closures on June 30. Additionally, Shadees fixed manufacturing overhead is $1,400 per month, and variable manufacturing overhead is $2.00 per unit produced.

Required:

1. Determine Shadee's budgeted cost of closures purchased for May and June.

2. Determine Shadee's budget manufacturing overhead for May and June.

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Suppose that each visor takes 0.20 direct labor hours to produce and Shadee pays its workers $7 per hour.

Required:

Determine Shadee's budgeted direct labor cost for May and June.

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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 $2.00 each. Shadee wants to have 27 closures on hand on May 1, 18 closures on May 31, and 24 closures on June 30 and variable manufacturing overhead is $2.00 per unit produced. Suppose that each visor takes 0.20 direct labor hours to produce and Shadee pays its workers $7 per hour.

Required:

1. Determine Shadees budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $7.)

2. Compute the Shadees budgeted cost of goods sold for May and June.

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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 $2.00 each. Shadee wants to have 27 closures on hand on May 1, 18 closures on May 31, and 24 closures on June 30. Additionally, Shadees fixed manufacturing overhead is $1,400 per month, and variable manufacturing overhead is $2.00 per unit produced. Each visor takes 0.20 direct labor hours to produce and Shadee pays its workers $7 per hour.

Additional information:

• Selling costs are expected to be 7 percent of sales.
• Fixed administrative expenses per month total $1,400.

Required:

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

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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 $2.00 each. Shadee wants to have 27 closures on hand on May 1, 18 closures on May 31, and 24 closures on June 30 and variable manufacturing overhead is $2.00 per unit produced. Suppose that each visor takes 0.20 direct labor hours to produce and Shadee pays its workers $7 per hour.

Additional information:

• Selling costs are expected to be 7 percent of sales.
• Fixed administrative expenses per month total $1,400.

Required:

Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $7.00.)

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Shadee Corp. expects to sell 580 sun visors in May and 360 in June. Each visor sells for $17. Shadees beginning and ending finished goods inventories for May are 80 and 45 units, respectively. Ending finished goods inventory for June will be 65 units.

It expects the following unit sales for the third quarter:

July	530
August	460
September	460

Sixty percent of Shadees sales are cash. Of the credit sales, 54 percent is collected in the month of the sale, 36 percent is collected during the following month, and 10 percent is never collected.

Required:

Calculate Shadees total cash receipts for August and September.