Question

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. 18 closures on May 31, and 22 closures on June 30 and variable manufacturing overhead is $250 per unit produced. Suppose that each visor takes 0.70 direct labor hours to produce and Shadee pays its workers 57 per hour Required: 1. Determine Shadee's budgeted manufacturing cost per visor (Note: Assume that fixed overhead per unit is $1.40) (Round your answer to 2 decimal places) Manufacturing Cost per Unit 2. Compute the Shadee's budgeted cost of goods sold for May and June (Do not round your intermediate values. Use rounded cost per unit in intermediate calculations.) May June Budgeted Cost of Goods Sold

Answer 1

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Shadee’s
Budgeted Production in Units	May	June
Sales in units	570.00	300.00
Add: Desired Ending Inventory	40.00	60.00
Total units needed	610.00	360.00
Less: Beginning Inventory	85.00	40.00
Budgeted Production in Units	525.00	320.00
Calculation of Labor cost per unit
Labor hour per unit	0.70		A
Labor cost per hour	7.00		B
Labor cost per unit	4.90		C=A*B
Answer 1
Manufacturing cost per unit	Amount $
Direct Materials	4.50
Direct Labor	4.90		See C
Variable manufacturing overhead	2.50
Fixed manufacturing overhead	1.40
Manufacturing cost per unit	13.30		D
Answer 2	May	June
Sales in units	570.00	300.00	E
Manufacturing cost per unit	13.30	13.30	See D
Cost of goods sold	7,581.00	3,990.00	F=E*D