Question

[The following information applies to the questions displayed below.] Shadee Corp. expects to sell 530 sun visors in May and 360 in June. Each visor sells for $22. Shadee's beginning and ending finished goods inventories for May are 90 and 50 units, respectively. Ending finished goods inventory for June will be 65 units. References Section Break SB Exercise E8-5 to E8-10

Answer 1

@ Budgeted total sales for may month = 530 X $22 = $11,660] Budgeted total sales for June month = 360 × $22 = $ 7,920) 6 statement showing the calculation of budgeted production (in units) particulars May June Sales (in units) 530 360 Add: Ending finished goods inventory Cín units) 50 65 Less: Beginning finished goods inventory Cinen't) 90 50 Budgeted production (in units) [490] 375]

#Ending finished goods inventory of may is Beginning finished goods inventory.