Question

SB Exercise E8-5 to E8-10 [The following information applies to the questions displayed below) Shadee Corp. expects to sell 540 sun visors in May and 340 in June. Each visor sells for $23. Shadee's beginning and ending finished goods inventories for May are 60 and 50 units, respectively. Ending finished goods inventory for June will be 65 units. References Required Information Section Break SB Exercise EB-5 to E8-10 [The following information applies to the questions displayed below) 2. 3.33 points Required information Shadee Corp. expects to sell 540 sun visors in May and 340 in June. Each visor sells for $23. Shadee's beginning and ending finished goods inventories for May are 60 and 50 units, respectively Ending finished goods inventory for June will be 65 units E8-6 Preparing R Each visor requires a total of $5.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.50 each. Shadee wants to have 30 closures on hand on May 1, 17 closures on May 31, and 27 closures on June 30. Additionally, Shadee's fixed manufacturing overhead is $800 per month, and variable manufacturing overhead is $2 25 per unit produced

Answer 1

Solution 1:

Production Budget - Shadee Corp
Particulars	May	June
Expected sales units	540	340
Add: ending inventory	50	65
Less: Beginning inventory	60	50
Estimated production units of visor	530	355

Budgeted Purchase of cost of closures - Shadee Corp
Particulars	May	June
Budgeted Production units	530	355
Adjustable closure per unit	1	1
Estimated consumption of Adjustable Closures	530	355
Add: ending inventory	17	27
Less: Beginning inventory	30	17
Budgeted purchase units of adjustable closures	517	365
Cost per unit of closures	$2.50	$2.50
Budgeted cost of purchases	$1,292.50	$912.50

Solution 2:

Budgeted manufacturing overhead budget - Shadee Corp
Particulars	May	June
Budgeted Production units	530	355
Variable overhead cost per unit	$2.25	$2.25
Budgeted variable overhead cost	$1,192.50	$798.75
Budgeted fixed overhead cost	$800.00	$800.00
Budgeted manufacturing overhead	$1,992.50	$1,598.75

Solution 3:

Budgeted labor cost budget - Shadee Corp
Particulars	May	June
Budgeted Production units	530	355
Direct labor hours per unit	0.80	0.80
Budgeted direct labor hours	424	284
direct labor cost per hour	$7.00	$7.00
Budgeted direct labor cost	$2,968.00	$1,988.00