The following information applies to the questions displayed below.] Shadee Corp

Question

The following information applies to the questions displayed below.] Shadee Corp. expects to sell 530 sun visors in May and 360 in June. Each visor sells for $26. Shadee's beginning and ending finished goods inventories for May are 80 and 50 units, respectively. Ending finished goods inventory for June will be 55 units. Required information 10.00 points 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 $2.00 each. Shadee wants to have 25 closures on hand on May 1, 20 closures on May 31, and 23 closures on June 30. Additionally, Shadee's fixed manufacturing overhead is $1,300 per month, and variable manufacturing overhead is $2.50 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 $ 1.825.0of $ 373.00 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 June Budgeted Manufacturing Overhead? $ 1.82500? $ 1,547.50

Explanation / Answer

The following table shows the calculations

Calculations Particulars May June A Sales 530 360 B Closing inventory of finished goods 50 55 C = B of previous month Beginning inventory of finished goods 80 50 D = A + B - C Total finished goods required to be produced 500 365 E Closure required per unit 1 1 F = D x E Total closures required for production 500 365 G Closing inventory of closures 20 23 H = G of previous month Beginning inventory of closures 25 20 I = F + G - H Number of closures purchased 495 368 J Cost per closure 2 2 K = I x J Budgeted cost of closures purchased 990.00 736.00 L Fixed manufacturing overhead 1300 1300 M Variable manufacturing overhead per unit 2.5 2.5 N = D x M Total variable overhead 1250 912.5 O = L + N Total manufacturing overhead 2550.00 2212.50

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