Question

The following information applies to the questions displayed below.] Shadee Corp. expects to sell 530 sun visors in May and 370 in June. Each visor sells for $25. Shadee's beginning and ending finished goods inventories for May are 65 and 60 units, respectively. Ending finished goods inventory for June will be 60 units.

Answer 1

Solutions:

D E F 2 3 SOLUTION 1 4 Computation of Production units - Shadee Corp 5 Particulars May June Expected sales units Add: ending inventory Less: Beginning inventory 530 370 7 60 60 65 60 Estimated production units of visor 10 525 370 11 12 13 Budgeted Purchase cost of closures - Shadee Corp 14 Particulars June May Budgeted Production units Adjustable closure per unit Estimated consumption of Adjustable Closures Add: ending inventory Less: Beginning inventory 15 370 525 16 1 1 525 17 370 23 18 28 28 19 23 20 Budgeted purchase units of adjustable closures 21 375.00 520.00 $2.50 $2.50 22 Cost per unit of closures 23 $1,300.00 $937.50 24 Budgeted cost of Closures 25 26 SOLUTION 2 27 Budgeted manufacturing overhead budget - Shadee Corp 28 Particulars May June Budgeted Production units Variable overhead cost per unit 29 525 370 $1.50 $1.50 30 31 Budgeted variable overhead cost Budgeted fixed overhead cost $787.50 $900.00 $555.00 $900.00 32 33 34 $1,687.50 $1,455.00 35 Budgeted manufacturing overhead 36 3) Sheet79 (9) Sheet524 (2) Sheet 594 Sheet592 Sheet