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c o l ezto.mheducation.com/hm.tpx Apps D 2 D 3 Bookmarks O My Subscriptions-Y G Google | New Tab a MAccountng mMyNenacia aluc 2.00 points Required infomation E8-6 Preparing Raw Materials Purchases and Manufacturing Overhead Budgets [LO 8-3c, e] 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 34 closures on hand on May 1, 17 closures on May 31, and 23 closures on June 30. Additionally. Shadee's fixed manufacturing overhead is $800 per month, and variable manufacturing overhead is $1.50 per unit produced Required: 1. Determine Shadee's budgeted cost of closures purchased for May and June (Round your answers to 2 decimal places.) MayJune Required Information Budgeted Cost of Closures Purchased 943.50 SB Exercise E8-5 to E8-10 2. Determine Shadee's budget manufacturing overhead for May and June The following information applies to the questions displayed below] Shadee Corp expects to sell 650 sun visors in May and 310 in June. Each visor sells for $27, Shadee's beginning and ending finished goods inventories for May are 70 ond 55 units, respectively. Ending finished goods inventory for June will be 55 units Budgeted Manufacturing Overhead 0-31 PM

Explanation / Answer

1. Shadee corp expect to sell 310 visor in June.

Closures available as on 1st June = 17 (i.e. closures as on 31 May)

Shadeep corp want to have 23 closures as on 30 June.

Hence no of visor to be manufactured in June = 310-17+23= 316

Cost of closure per visor = $1.50

Therefore total cost of closures purchased in June = 316*$1.50 = $474

2. Caluclation of budgeted manufacturing overhead for May & June

Particulars May June No of visors expect to sell (A) 650 310 No of viosors in beginning finished goods (B) 70 55 No of viosors in ending finished goods (C ) 55 55 No of Visor to be manufactured (D=A-B+C) 635 310 Variable Manufacturing overhead per unit (E) $1.50 $1.50 Total Variable manufacturing overhead(F = D*E) $952.50 $465.00 Fixed Overhead per month (G) $800.00 $800.00 Total budgeted manufacturing overhead (H=F+G) $1,752.50 $1,265.00

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