Question

[The following information applies to the questions displayed below.] value: 2.00 points Tired information Shadee Corp. expects to sell 510 sun visors in May and 440 in June. Each visor sells for $21. Shadee's beginning and ending finished goods inventories for May are 90 and 50 units, respectively. Ending finished goods inventory for June will be 55 units. Each visor requires a total of $4.50 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, 20 closures on May 31, and 25 closures on June 30. Additionally, Shadee's fixed manufacturing overhead is $1,300 per month, and variable manufacturing overhead is $2.75 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 Purchased 2. Determine Shadee's budget manufacturing overhead for May and June. (Do not round your intermediate values. Round your answers to 2 decimal places.) May June Budgeted Manufacturing Overhead

Answer 1

Solutions:

AR SK SOLUTION 1 Computation of Production units - Shadee Corp Particulars May Expected sales units 510 Add: ending inventory Less: Beginning inventory 90 6 June 440 55 50 10 Estimated production units of visor 470 445 My 14 15 16 17 Budgeted Purchase cost of closures - Shadee Corp Particulars May June Budgeted Production units 470 445 Adjustable closure per unit 1 Estimated consumption of Adjustable Closures 470 445 Add: ending inventory 2025 Less: Beginning inventory 31 20 18 19 20 21 Budgeted purchase units of adjustable closures Cost per unit of closures 459.00 $1.50 450.00 $1.50 22 24 Budgeted cost of Closures $688.50 $675.00 26 27 28 SOLUTION 2 Budgeted manufacturing overhead budget - Shadee Corp Particulars May June Budgeted Production units 470 Variable overhead cost per unit $2.75 $2.75 29 445 30 31 32 Budgeted variable overhead cost Budgeted fixed overhead cost $1,292.50 $1,223.75 $1,300.00 $1,300.00 33 34 35 Budgeted manufacturing overhead $2,592.50 $2,523.75 36 3) Sheet592 Sheet79 (9) Sheet594 Sheet524 (2) Sheet