each visor requires a total of $5.50 in direct materials that includes an adjust

Question

each visor requires a total of $5.50 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 28 closures on hand on May 1st, 17 closures on May 31st, and 27 closures on June 30th and variable manufacturing overhead is $2.50 per unit produced.

Each visor requires a total of $5.50 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 28 closures on hand on May 1, 17 closures on May 31, and 27 closures on June 30 and variable manufacturing overhead is $2.50 per unit produced. Suppose that each visor takes 0:20 direct labor hours to produce and Shadee pays its workers $11 per hour Required: 1. Determine Shadee's budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $1.40.) (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

Explanation / Answer

1) Budgeted manufacturing cost per visor: Material 2.2 units @2.5 $5.50 Labor 0.20 hour @11 $2.20 M. O/H: variable $2.50 Fixed $1.40 Manuf. Cost per visor $11.60 2) As the total quantity sold out is not provided, so May June Budgeted cost of goods sold per unit sold $11.60 $11.60 3) Budget selling and administrative expenses is not possible as Sales is not provided.

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