The following information applies to the questions displayed below.] Shadee Corp. expects to sell 630 sun visors in May and 410 in June. Each visor sells for $24. Shadee’s beginning and ending finished goods inventories for May are 75 and 45 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 31 closures on hand on May 1, 23 closures on May 31, and 20 closures on June 30. Additionally, Shadee’s fixed manufacturing overhead is $700 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. 2. Determine Shadee's budget manufacturing overhead for May and June. Required 1 Required 2
[The following information applies to the questions displayed below.]
Shadee Corp. expects to sell 630 sun visors in May and 410 in June.
Each visor sells for $24. Shadee’s beginning and ending finished
goods inventories for May are 75 and 45 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 31 closures on hand on May 1, 23 closures on May 31, and 20 closures
on June 30. Additionally, Shadee’s fixed manufacturing overhead is $700 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.
2. Determine Shadee's budget manufacturing overhead for May and June.
Required 1 Required 2
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 4 images