[The following information applies to the questions displayed below.] Shadee Cor
ID: 2569451 • Letter: #
Question
[The following information applies to the questions displayed below.] Shadee Corp. expects to sell 560 sun visors in May and 330 in June. Each visor sells for $19. Shadee's beginning and ending finished goods inventories for May are 80 and 45 units, respectively. Ending finished goods inventory for June will be 50 units. value: 10.00 points Required information Each visor requires a total of $5.00 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 34 closures on hand on May 1, 20 closures on May 31, and 22 closures on June 30. Additionally, Shadee's fixed manufacturing overhead is $1,200 per month, and variable manufacturing overhead is $1.75 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 PurchasedExplanation / Answer
Particulars
May
June
Sold
560
330
Add: Ending Inventory
45
50
Total Requirement
605
380
Less: Beginning Inventory
-80
-45
Production
525
335
Particulars
May
June
Production Requirement
1750
[525*5/1.5]
1116.67
[335*5/1.5]
Add: Closing Inventory
20
22
Total Requirement
1770
1138.67
Less: Beginning Inventory
34
20
Total Purchases of Direct Material
1736
1118.67
Cost of each Direct Material
1.5
1.5
Budgeted cost of closures purchased
2604
1678
Particulars
May
June
Sold
560
330
Add: Ending Inventory
45
50
Total Requirement
605
380
Less: Beginning Inventory
-80
-45
Production
525
335
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