Shadee Corp. expects to sell 560 sun visors in May and 330 in June. Each...

80.2K

Verified Solution

Question

Accounting

Shadee Corp. expects to sell 560 sun visors in May and 330 in June. Each visor sells for $20. Shadees beginning and ending finished goods inventories for May are 65 and 55 units, respectively. Ending finished goods inventory for June will be 65 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 $2.50 each. Shadee wants to have 26 closures on hand on May 1,22 closures on May 31, and 21 closures on June 30 and variable manufacturing overhead is $2.75 per unit produced. Suppose that each visor takes 0.80 direct labor hours to produce and Shadee pays its workers $6 per hour.
Required:
1. Determine Shadees budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $2.)
2. Compute the Shadees budgeted cost of goods sold for May and June.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students