Question

Determine Shadee's budgeted cost of closures purchased for May and June.

Determine Shadee's budget manufacturing overhead for May and June.

Required information 2.00 points You did not receivelul credit for this question in a previous attem E8-6 Preparing Raw Materials Purchases and Manufacturing Overhead Budgets LO 8-3c, el Each or requires of $5.00 in direct material that includes an adjustable closures on May 31 and 24 coreon June 30. Additional Shad e sure that the company purchases from a supplier at a cost of $1.50 each She wants to have 20 losures on and on May 1.15 r ing vereis 1.100 per mon and manufacturing overhead is $100 per un produced Required 1. Determine Shades budgeted cost of our purchased for May and Required Information Budgeted Cost of Closure Purchased 3 150.00 M00 SB Exercise EB-5 to E8-10 The following Wormation to the questions displayed below. 2. Determine shade's budget marching overhead for May and June (Den Shade Corp expect to sell 640 sun visors in May d 450 in June. Each vor 15 Shade beginning and ending the goods v ores for May are 80 and its respectivery Ending finished goods Inventory for one will be units Butted Mancing we

Answer 1

Answer 1

	May	June
Budgeted cost of closures purchased	$ 888.00	$ 718.50

Calculations:

	May	June
Sale units	640	450
Add: Closing Stock of Finished Goods	45	65
Less: Opening Stock of Finished goods	80	45
Production	605	470
Add: Closing Stock of Raw material	15	24
Less: Opening Stock of Raw material	28	15
Material to be purchased	592	479
Per unit cost	$     1.50	$     1.50
Budgeted cost of closures purchased	$ 888.00	$ 718.50

Answer 2

	May	June
Budgeted manufacturing overhead	$   1,705	$   1,570

Calculations:

	May	June
Units to be produced	605	470
Variable Overhead per unit	$           1	$           1
Variable Overhead	$      605	$      470
Fixed Overhead	$   1,100	$   1,100
Budgeted manufacturing overhead	$   1,705	$   1,570

In case of any doubt, please comment.