Question
Shadee Corporation expects to sell 620 sun shades in May and 390 in June. Each shade sells for $136. Shadees beginning and ending finished goods
Shadee Corporation expects to sell 620 sun shades in May and 390 in June. Each shade sells for $136. Shadees beginning and ending finished goods inventories for May are 60 and 50 shades, respectively. Ending finished goods inventory for June will be 55 shades.
Each shade requires a total of $45.00 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to have 130 in direct materials inventory on May 1, 100 poles in inventory on May 31, and 120 poles in inventory on June 30.
Required:
Prepare Shadees May and June purchases budget for the adjustable poles.
I have the Budgeted Production Units as 610 and 395 and that is correct. I keep getting $17050 and $8050 for the budgeted cost of closures purchased and that is incorrect. Please help asap!
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