Shader Corp. expects to sell 540 sun visors in May and 350 in June. Each visor sells for $14. Shadee's beginning and ending finished goods inventories for May are BO and 50 units, respectively. Ending finished goods inventory for June will be 65 units References Section Break SE Exercise E85 to 8-10 3. Required information 1.50 points E8-5 Calculating Sales and Production Budgets [LO 8-3a, b] Required 1. Determine Shadee's budgeted total sales for May and June. June May 7,560 s Budgeted Total Sales 4.900 2. Determine Shadee's budgeted production in units for May and June. May June 555 350 Budgeted Production (Units) E8-6 Preparing Raw Materials Purchases and Manufacturing Overhead Budgets [LO 8-3c, e] Each visor requires a total of $5.00 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 26 closures on hand on May 1, 17 closures on May 31, and 27 closures on June 30. Additionally, Shadee's fixed manufacturing overhead is $1,600 per month, and variable manufacturing overhead is $1.00 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 Overhead E8-7 Preparing Direct Labor Budget [LO 8-3d] Suppose that each visor takes 0.10 direct labor hours to produce and Shadee pays its workers $12 per hour. Required: Determine Shadee's budgeted direct labor cost for May and June. (Do not round your intermediate values. Round your answers to 2 decimal places.) May June Budgeted Direct Labor Cost E8-8 Preparing Cost of Goods Sold Budget [LO 8-3f] Each visor requires a total of $5.00 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 26 closures on hand on May 1, 17 closures on May 31, and 27 closures on June 30 and variable manufacturing overhead is $1.00 per unit produced. Suppose that each visor takes 0.10 direct labor hours to produce and Shadee pays its workers $12 per hour. Required: 1. Determine Shadee's budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $1.10.) (Round your answer to 2 decimal places.) Manufacturing Cost per Unit 2. Compute the Shadee's budgeted cost of goods sold for May and June. (Do not round your intermediate values. Use rounded cost per unit in intermediate calculations.) May June Budgeted Cost of Goods Sold E8-9 Preparing Selling and Administrative Expense Budget [LO 8-3g] Each visor requires a total of $5.00 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 26 closures on hand on May 1, 17 closures on May 31, and 27 closures on June 30. Additionally, Shadee's fixed manufacturing overhead is $1,600 per month, and variable manufacturing overhead is $1.00 per unit produced. Each visor takes 0.10 direct labor hours to produce and Shadee pays its workers $12 per hour. Additional information: . Selling costs are expected to be 10 percent of sales. Fixed administrative expenses per month total $1,400. . Required: Determine Shadee's budgeted selling and administrative expenses for May and June. (Do not round your intermediate calculations. Round your answers to 2 decimal places.) May June Budgeted Selling and Administrative Expenses
