6) Shadee Corp. expects to sell 600 sun visors in May and 800 in June. Each viso

Question

6) Shadee Corp. expects to sell 600 sun visors in May and 800 in June. Each visor sells for $18. Shades beginning and ending finished goods inventories for May are 75 and 50 units,respectively. Ending finished goods inventory for June will be 60 units. 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 30 closures on hand on May 1, 20 closures on May 31 and 25 closures on June 30 and variable manufacturing overhead is $1.25 per unit produced. Suppose that each visor takes 0.30 direct labor hours to produce and Shadee pays its workers $9 per hour.
6-1. Determine shadees budgeted manufacturing cost per visor. (Note: assume that fixed overhead per unit is $2) (round answer to 2 decimal places)
6-2. Determine shadees budgeted cost of goods sold for May and June. 6) Shadee Corp. expects to sell 600 sun visors in May and 800 in June. Each visor sells for $18. Shades beginning and ending finished goods inventories for May are 75 and 50 units,respectively. Ending finished goods inventory for June will be 60 units. 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 30 closures on hand on May 1, 20 closures on May 31 and 25 closures on June 30 and variable manufacturing overhead is $1.25 per unit produced. Suppose that each visor takes 0.30 direct labor hours to produce and Shadee pays its workers $9 per hour.
6-1. Determine shadees budgeted manufacturing cost per visor. (Note: assume that fixed overhead per unit is $2) (round answer to 2 decimal places)
6-2. Determine shadees budgeted cost of goods sold for May and June.
6-1. Determine shadees budgeted manufacturing cost per visor. (Note: assume that fixed overhead per unit is $2) (round answer to 2 decimal places)
6-2. Determine shadees budgeted cost of goods sold for May and June.

Explanation / Answer

Question    6 - 1

Budgeted Manufacuring cost per visor

Question 6.2    Cost of goods sold

May = 600 Visors sold * 9.95 = 5970

June = 800 Visors sold * 9.95 = 7960

Material 2.5 Adjustable closure 1.5 Labour = ( 0.30 * 9 ) 2.7 Varible Overhead 1.25 Fixed overhead 2 Manufacturing cost per Visor 9.95

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