Budgeted total sales for May and June Budgeted production in units for May and J

Question

Budgeted total sales for May and June

Budgeted production in units for May and June

Ending Inventory of May will be beginning Inventory of June

Calculations Particulars May June A Sales units 620 350 B Selling price per unit 22 22 C = A x B Total Budgeted Sales    13,640    7,700 Each visor requires a total of $4.50 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 32 closures on hand on May 1, 19 closures on May 31, and 22 closures on June 30. Additionally, Shadee's fixed manufacturing overhead is $700 per month, and variable manufacturing overhead is $1.25 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 manufacturng overhead for May and June. (Do not round your intermediate values. Round your answers to 2 decimal places.) May June Budgeted Manufacturing Overhead

Explanation / Answer

Note : Total units of closures required in production = Budgeted production in units of visor for the month

Answer 1

Computation of budgeted cost of closures purchased for May & June

Answer 2

Computation of budgeted manufacturing overhead for May & June

Computation budgeted direct labour cost for May & June

Particular May June Total units of closures required in production 610 350 Add :Budgeted ending inventory units 19 22 Less : Budgeted beginning inventory (32) (19) = Budgeted purchase in units 597 353 * Per unit cost $1.50 $1.50 Budgeted cost of closures purchased $895.50 $529.50

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