Question

[The following information applies to the questions displayed below.] Shadee Corp. expects to sell 610 sun visors In May and 400 In June. Each visor sells for $19. Shadee's beginning and ending finished goods Inventories for May are 85 and 55 units, respectively. Ending finished goods Inventory for June will be 55 units. References Section Break SB Exercise E8-5 to E8-10 value: Required information 1.50 points E8-5 Calculating Sales and Production Budgets [LO 8-3a, b] Required: 1. Determine Shadee's budgeted total sales for May and June. May 11,590 June 7,600 Budgeted Total Sales $ S

Answer 1

Solution :

Sales Budget - Shadee Corp
Particulars	May	June
Expected sales units	610	400
Selling price per unit	$19.00	$19.00
Budgeted Total Sales	$11,590.00	$7,600.00

Production Budget - Shadee Corp
Particulars	May	June
Expected sales units	610	400
Add: ending inventory	55	55
Less: Beginning inventory	85	55
Estimated production units of visor	580	400

Budgeted Purchase of cost of closures - Shadee Corp
Particulars	May	June
Budgeted Production units	580	400
Adjustable closure per unit	1	1
Estimated consumption of Adjustable Closures	580	400
Add: ending inventory	21	25
Less: Beginning inventory	25	21
Budgeted purchase units of adjustable closures	576	404
Cost per unit of closures	$2.00	$2.00
Budgeted cost of purchases	$1,152.00	$808.00

Budgeted manufacturing overhead budget - Shadee Corp
Particulars	May	June
Budgeted Production units	580	400
Variable overhead cost per unit	$2.50	$2.50
Budgeted variable overhead cost	$1,450.00	$1,000.00
Budgeted fixed overhead cost	$1,400.00	$1,400.00
Budgeted manufacturing overhead	$2,850.00	$2,400.00

Budgeted labor cost budget - Shadee Corp
Particulars	May	June
Budgeted Production units	580	400
Direct labor hours per unit	0.50	0.50
Budgeted direct labor hours	290	200
direct labor cost per hour	$7.00	$7.00
Budgeted direct labor cost	$2,030.00	$1,400.00

Computation of budgeted manufacturing cost per visor - Shadee Corp.
Particulars	Per Unit
Direct Material	$4.50
Direct labor (0.5*$7)	$3.50
Variable manufacturing overhead	$2.50
Fixed manufacturing overhead	$2.10
Budgeted manufacturing cost per unit	$12.60

Computation of budgeted cost of goods sold - Shadee Corp
Particulars	May	June
Expected sales units	610	400
Manufacturing cost per unit	$12.60	$12.60
Budgeted cost of goods sold	$7,686.00	$5,040.00

Budgeted Selling & Administrative Expenses - Shadee Corp
Particulars	May	June
Budgeted sales	$11,590.00	$7,600.00
Selling cost	$811.30	$532.00
Fixed administrative expenses	$1,400.00	$1,400.00
Budgeted selling & Administrative expenses	$2,211.30	$1,932.00