The following information applies to the questions displayed below] ento y fo Ju

Question

The following information applies to the questions displayed below] ento y fo June will be Shadee Corp. expects to sell 630 sun visors in May and 430 in June. Each viso sells for $20 Shadee's beginning and ending finished goods inventories for May are 70 and 45 units, espectively Ending finished goods i 55 units. References Section Break SB Exerclse EB-5 to E8-10 Required information 2.00 points E8-6 Preparing Raw Materials Purchases and Manufacturing Overhead Budgets [LO 8-3c, e] 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 35 closures on hand on May 1, 20 closures on May 31, and 25 closures on June 30. Additionally, Shadee's fixed manufacturing overhead is $1,500 per month, and variable manufacturing overhead is $1.00 per unit produced 1. Detemine Shadee's budgetod cost of closures purchased for May and June. (Round your answers to 2 decimal places.) 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 Budgeted Manufacturing Overhead

Explanation / Answer

Requirement 1 Shadee Corp. Budgeted cost of closures Purchased May Jun Units to be Produced 605 440 Multiply by : Quantity of closeure needed per unit 1 1 Quantity needed for production 605 440 Plus: Desired ending inventory of Closures 20 25 Total quantity needed 625 465 Less Begining Inventory of Closures 35 20 Quantity to Purchase 590 445 Multiply by: Cost per Closures        1.50       1.50 Budgeted cost of closures Purchased 885.00 667.50 Workings for Requirement 1 Budgeted Units to be purchased May Jun Expected sales 630 430 Add: Ending Finished goods inventory 45 55 Required Finished goods 675 485 Less: Beginning Finished goods Inventory 70 45 Units to be Produced 605 440 Requirement 2 Budgeted Manufacturing Overhead Units to be Produced 605 440 Multiply by: Variable manufacturing Overhead per Unit        1.00       1.00 Variable manufacturing Overhead 605.00 440.00 Fixed Manufacturing overhead 1500.00 1500.00 Budgeted Manufacturing Overhead 2105.00 1940.00

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