Shadee Corp. expects to sell 630 sun visors in May and 410 in June. Each visor sells for $24. Shadee’s beginning and ending finished goods inventories for May are 75 and 45 units, respectively. Ending finished goods inventory for June will be 60 units. ! Each visor requires a total of $4.00 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 31 closures on hand on May 1, 23 closures on May 31, and 20 closures on June 30. Additionally, Shadee’s fixed manufacturing overhead is $700 per month, and variable manufacturing overhead is $1.75 per unit produced. Each visor takes 0.80 direct labor hours to produce and Shadee pays its workers $8 per hour. Additional information: Selling costs are expected to be 8 percent of sales. Fixed administrative expenses per month total $1,300. 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.) $ $ May June Budgeted Selling and Administrative Expenses 0.00 1,000.00
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Shadee Corp. expects to sell 630 sun visors in May and 410 in June.
Each visor sells for $24. Shadee’s beginning and ending finished
goods inventories for May are 75 and 45 units, respectively. Ending
finished goods inventory for June will be 60 units.
!
Each visor requires a total of $4.00 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 31 closures on hand on May 1, 23 closures on May 31, and 20 closures
on June 30. Additionally, Shadee’s fixed manufacturing overhead is $700 per month,
and variable manufacturing overhead is $1.75 per unit produced. Each visor takes 0.80
direct labor hours to produce and Shadee pays its workers $8 per hour.
Additional information:
Selling costs are expected to be 8 percent of sales.
Fixed administrative expenses per month total $1,300.
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.)
$ $
May June
Budgeted Selling and Administrative Expenses 0.00 1,000.00
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