Question

Required information [The following information applies to the questions displayed below.] Shadee Corp. expects to sell 540 sun visors in May and 420 in June. Each visor sells for $18. Shadee's beginning and ending finished goods inventories for May are 80 and 50 units, respectively. Ending finished goods inventory for June will be 55 units. Suppose that each visor takes 0.50 direct labor hours to produce and Shadee pays its workers $6 per hour. Required: Determine Shadee's budgeted direct labor cost for May and June. (Do not round your intermediate values. Round your answers to 2 decimal places.) May 1,530.00 June 1,275.00 Budgeted Direct Labor Cost | $ $
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Answer 1

Solution:

D T 26 27 28 29 30 31 32 33 Production Budget - Shadee Corp Particulars Expected sales units Add: ending inventory Less: Beginning inventory May 540 50 June 420 55 50 34 80 35 36 37 Estimated production units of visor 10 38 39 53 54 55 56 57 58 510 Budgeted labor cost budget - Shadee Corp Particulars May Budgeted Production units Direct labor hours per unit 0.50 Budgeted direct labor hours 255.00 direct labor cost per hour $6.00 June 425 0.50 212.50 $6.00 59 60 Budgeted direct labor cost $1,530.00 $1,275.00 61 63 64 65 66 67 69 70 72 73 74 75 76 77 78 Sheet230 (5) Sheet156 (46) Sheet743 Sheet744 She

Solution:

Computation of budgeted manufacturing cost per visor - Shadee Corp. Particulars Per Unit Direct Material $4.00 Direct labor (0.50*$6) $3.00 Variable manufacturing overhead $2.00 Fixed manufacturing overhead $1.90 9 10 12 Budgeted manufacturing cost per unit $10.90 17 18 Computation of budgeted cost of goods sold - Shadee Corp Particulars May June Expected sales units 540 420 Manufacturing cost per unit $10.90 $10.90 Budgeted cost of goods sold $5,886.00 $4,578.00 39 40 41 et835 Sheet144 (3) ) Sheet837 ) Sheet838 Sheet230 (6)