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Q1/ Shadee Corp. expects to sell 620 sun visors in May and 440 in June. Each vis

ID: 2460069 • Letter: Q

Question

Q1/ Shadee Corp. expects to sell 620 sun visors in May and 440 in June. Each visor sells for $23. Shadee’s beginning and ending finished goods inventories for May are 60 and 55 units, respectively. Ending finished goods inventory for June will be 55 units.

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

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

q2/ 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 33 closures on hand on May 1, 23 closures on May 31, and 22 closures on June 30. Additionally, Shadee’s fixed manufacturing overhead is $1,400 per month, and variable manufacturing overhead is $2.75 per unit produced.

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

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

q3/ Suppose that each visor takes 0.80 direct labor hours to produce and Shadee pays its workers $10 per hour.

1_Determine Shadee's budgeted direct labor cost for May and June?

q4/ 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 33 closures on hand on May 1, 23 closures on May 31, and 22 closures on June 30 and variable manufacturing overhead is $2.75 per unit produced. Suppose that each visor takes 0.80 direct labor hours to produce and Shadee pays its workers $10 per hour.

1_ Determine Shadee’s budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $1.70.) ?

2_ Compute the Shadee’s budgeted cost of goods sold for May and June ?

q2/ 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 33 closures on hand on May 1, 23 closures on May 31, and 22 closures on June 30. Additionally, Shadee’s fixed manufacturing overhead is $1,400 per month, and variable manufacturing overhead is $2.75 per unit produced.

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

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

q3/ Suppose that each visor takes 0.80 direct labor hours to produce and Shadee pays its workers $10 per hour.

1_Determine Shadee's budgeted direct labor cost for May and June?

q4/ 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 33 closures on hand on May 1, 23 closures on May 31, and 22 closures on June 30 and variable manufacturing overhead is $2.75 per unit produced. Suppose that each visor takes 0.80 direct labor hours to produce and Shadee pays its workers $10 per hour.

1_ Determine Shadee’s budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $1.70.) ?

2_ Compute the Shadee’s budgeted cost of goods sold for May and June ?

Explanation / Answer

Shadee Corporation Details May Jun      1 Units of Visor sales estimated                   620                    440 Unit Selling Price                     23                       23 Budgeted Sales Revenue             14,260              10,120 May Jun      2 Budgeted Sales Visor                   620                    440 Add Ending FG inventory                     55                       55 Less Opening FG inventory                     60                       55 Required Production of Visor units                   615                    440 q2 May Jun      1 Required Production of Visor units                   615                    440 So Closures required for production                   615                    440 Add required closing stock closures                     23                       22 Less Opening Stock of closures                       33                       23 Required Purchase of Closures                   605                    439 Cost Per closure                  1.50                   1.50 Cost of Purchase of closures                   908                    659 May Jun      2 Required Production of Visor units                   615                    440 Variable Mfg overhead per unit                  2.75                   2.75 Budgeted Variable Mfg Overhead               1,691                 1,210 Fixed Manufacturing Overhead               1,400                 1,400 Budgeted Total Mfg Overhead               3,091                 2,610      3 May Jun Required Production of Visor units                   615                    440 Direct Labor hrs per visor                  0.80                   0.80 Total Budgeted Direct Labor Hours                     492                    352      4 Budgeted Manufacturing Cost per unit      1 Details Amt $ Direct Materials                  4.00 Direct Labor                  8.00 Variable Mfg OH                  2.75 Fixed Mfg OH                  1.70 Total Manufacturing cost per visor               16.45      2 Budgeted Cost of Goods Sold Amt $ Units of Visor sales estimated                   620                    440 Unit Manufacturing Cost               16.45                 16.45 Budgeted Cost Of Goods Sold $   10,199.00 $      7,238.00