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 640 sun visors in May and 440 in June. Each visor sels for $20. Shadee's beginning and ending fnished goods inventories for May are 70 and 60 units, respectively Ending faished goods inventory for June will be 65 units References Section Break SB Exercise EB S to ES-10 400 points E8-5 Calculating Sales and Production Budgets [LO 8-3a, b) Required 1. Determine Shadee's budgeted total sales for May and June Budgeted Total Sales 2. Determine Shadee's budgeted production in units for May and June Budgeted Production Uns) 8 7

Explanation / Answer

Problem : E8 -5 Requirement 1 Determine shadee Budgeted Total Sales for may and June may June Budgeted Total Sales $12800 $8800 ** May Sales =$20*640 =$12800 ** JUne Sales =$20*440 =$8800 Requirement 2 Determine shadee Budgeted Production in Units for may and June may June Budgeted Total Production in Units 630 445 May June Sales in Units 640 440 Add: Closing Stock 60 65 Less: opening Stock -70 -60 Production in Units 630 445 Problem : E8 -6 Requirement 1 Determine the Shadee Budgeted cost of Closures Purchased month may and June Determine shadee Budgeted cost of Closures purchased   for may and June may June Budgeted cost of Closures purchased $ 1,242.00 $     904.00 May June Total Production in Units 630 445 Total Closures Required for Production 630 445 Add: Closing Stock of Purchases 20 27 Less: Opening stock of Purchases -29 -20 Closures Purchases 621 452 Closures price per Unit $2 $2 Total Purchases cost $ 1,242.00 $     904.00 Requirement 2 Determine the Budgeted manufacturing Overhead Cost May June Budgeted manufacturing Overhead Cost $1830 $1645 May June Total Production In units 630 445 variable cost per Unit $1 $1 Total variable cost for month $630 $445 Fixed cost per month $1200 $1200 Total manufacturing Over head $ 1,830.00 $ 1,645.00 Problem : E8 -7 Requirement 1 Determine the Shadee Budgeted Direct labour Cost May June Direct labour Cost $3087 $2180.50 Total production In Units 630 445 Direct labour Hours per Unit 0.7hrs 0.7hrs Total Labour Hours required 441hrs 311.50hrs 630*$0.70 445*0.70 Labour hour rate $7 per Hour $7 per Hour Total Labour Cost $3087 $2180.50 441*$7 311.5*$7

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