Question

The following information applies to the questions displayed below.] Shadee Corp. expects to sell 640 sun visors in May and 440 in June. Each visor sells for $13. Shadee's beginning and ending finished goods inventories for May are 70 and 45 units, respectively. Ending finished goods inventory for June will be 50 units. value: Required information

Answer 1

Solution 1:

Computation of budgeted manufacturing cost per visor - Shadee Corp.
Particulars	Per Unit
Direct Material	$4.50
Direct labor (0.2*$6)	$1.20
Variable manufacturing overhead	$1.00
Fixed manufacturing overhead	$1.50
Budgeted manufacturing cost per unit	$8.20

Solution 2:

Computation of budgeted cost of goods sold - Shadee Corp
Particulars	May	June
Expected sales units	640	440
Manufacturing cost per unit	$8.20	$8.20
Budgeted cost of goods sold	$5,248.00	$3,608.00

Solution 3:

Budgeted Selling & Administrative Expenses - Shadee Corp
Particulars	May	June
Budgeted sales	$8,320.00	$5,720.00
Selling cost (6% of sales)	$499.20	$343.20
Fixed administrative expenses	$1,200.00	$1,200.00
Budgeted selling & Administrative expenses	$1,699.20	$1,543.20