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  3. 17) shadee corp. expects to sell 600 sun visors

17) Shadee Corp. expects to sell 600 sun visors in May and 330...

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Accounting

17)

Shadee Corp. expects to sell 600 sun visors in May and 330 in June. Each visor sells for $19. Shadees beginning and ending finished goods inventories for May are 60 and 55 units, respectively. Ending finished goods inventory for June will be 70 units.

Each visor requires a total of $3.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.00 each. Shadee wants to have 29 closures on hand on May 1, 19 closures on May 31, and 26 closures on June 30. Additionally, Shadees fixed manufacturing overhead is $900 per month, and variable manufacturing overhead is $1.00 per unit produced. Each visor takes 0.50 direct labor hours to produce and Shadee pays its workers $11 per hour.

Additional information:

  • Selling costs are expected to be 10 percent of sales.
  • Fixed administrative expenses per month total $1,100.

Required:

Determine Shadee's budgeted selling and administrative expenses for May and June. (Do not round your intermediate calculations. Round your answers to 2 decimal places.)

image

\begin{tabular}{|l|c||c|} \hline Budgeted Selling and Administrative Expenses & May & June \\ \hline \end{tabular}

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