Shadee Corp. expects to sell 590 sun visors in May and 410 in June. Each visor sells for $21. Shadee's beginning and ending finished goods inventories for May are 65 and 45 units, respectively. Ending finished goods Inventory for June will be 55 units Each visor requires a total of $5.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 28 closures on hand on May 1, 22 closures on May 31, and 24 closures on June 30 and variable manufacturing overhead is $1.00 per unit produced. Suppose that each visor takes 0.80 direct labor hours to produce and Shadee pays its workers $6 per hour. Additional information Selling costs are expected to be 8 percent of sales. Fixed administrative expenses per month total $1.300.

Shadee Corp. expects to sell 590 sun visors in May and 410 in June. Each visor sells for $21. Shadee's beginning and ending finished goods inventories for May are 65 and 45 units, respectively. Ending finished goods Inventory for June will be 55 units Each visor requires a total of $5.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 28 closures on hand on May 1, 22 closures on May 31, and 24 closures on June 30 and variable manufacturing overhead is $1.00 per unit produced. Suppose that each visor takes 0.80 direct labor hours to produce and Shadee pays its workers $6 per hour. Additional information Selling costs are expected to be 8 percent of sales. Fixed administrative expenses per month total $1.300.

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Description: Required Information[The following information applies to the questions displayed below]Shadee Corp. expects to sell 590 sun visors in May and 410 in June. Each visor sells for $21. Shadee's beginning andending finished goods inventories for May are

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 14PA: Total Pops data show the following information: New machinery will be added in April. This machine...

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Total Pops data show the following information: New machinery will be added in April. This machine will reduce the labor required per unit and increase the labor rate for those employees qualified to operate the machinery. Finished goods inventory is required to be 20% of the next months requirements. Direct material requires 2 pounds per unit at a cost of $3 per pound. The ending inventory required for direct materials is 15% of the next months needs. In January, the beginning inventory is 3,000 units of finished goods and 4,470 pounds of material. Prepare a production budget, direct materials budget, and direct labor budget for the first quarter of the year.
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