Pharoah Hats is planning to sell 646 straw hats in April. Each hat requires ½ kilogram of straw and 14 hour of direct labour. Straw costs $0.10 per kilogram and employees of the company are paid $21 per hour. Pharoah has 80 kilograms of straw and 48 hats in beginning inventory and wants to have 50 kilograms of straw and 60 hats in ending inventory. How many units should Pharoah Hats produce in April? 598 706 658 646
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- Emersyn Industries Emersyn Industries makes Elsa dolls. Emersyn likes to have 20% of the next month's sales needs in ending finished goods inventory. Each doll requires 1.5 yards of fabric that costs Emersyn $0.50 per yard. Emersyn requires that ending inventory of direct materials (fabric) on hand at the end of each month be equal to 40% of the following month's production needs. From past experience, the company has learned that 15% of the company's sales are for cash. The remaining sales are made on credit with 10% collected in the month of sale, 60% collected in the month following the sale, and 30% in the second month following the sale. The following data was taken from Emersyn's master budget: February March April May June Expected Production Units 6,940 8,200 10,400 8,240 9,660 Expected Sales Units 6,800 7,500 11,000 8,000 9,200 Expected Sales $ $68,000 $75,000 $110,000 $80,000 $92,000Required information [The following information applies to the questions displayed below.] Shadee Corporation expects to sell 640 sun shades in May and 330 in June. Each shade sells for $141. Shadee's beginning and ending finished goods inventories for May are 90 and 45 shades, respectively. Ending finished goods inventory for June will be 60 shades. Each shade requires a total of $45.00 in direct materials that includes 4 adjustable poles that cost $10.00 each. Shadee expects to have 120 in direct materials inventory on May 1, 80 poles in inventory on May 31, and 100 poles in inventory on June 30. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $14 per hour. Additionally, Shadee's fixed manufacturing overhead is $11,000 per month, and variable manufacturing overhead is $14 per unit produced. Additional information: • Selling costs are expected to be 8 percent of sales. • Fixed administrative expenses per month total $1,400. Required:…Shadee Corporation expects to sell 560 sun shades in May and 310 in June. Each shade sells for $164. Shadee's beginning and ending finished goods inventories for May are 80 and 40 shades, respectively. Ending finished goods inventory for June will be 55 shades. Each shade requires a total of $65.00 in direct materials that includes 4 adjustable poles that cost $10.00 each. Shadee expects to have 130 in direct materials inventory on May 1, 90 poles in inventory on May 31, and 110 poles in inventory on June 30. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $14 per hour. Additionally, Shadee's fixed manufacturing overhead is $9,000 per month, and variable manufacturing overhead is $14 per unit produced. Additional information: • Selling costs are expected to be 9 percent of sales. • Fixed administrative expenses per month total $1,100. Required: Prepare Shadee's budgeted income statement for the months of May and June. Note: Do not round your…
- Shadee Corporation expects to sell 630 sun shades in May and 320 in June. Each shade sells for $162. Shadee's beginning and ending finished goods inventories for May are 60 and 50 shades, respectively. Ending finished goods inventory for June will be 55 shades. Each shade requires a total of $60.00 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to have 130 in direct materials inventory on May 1, 80 poles in inventory on May 31, and 110 poles in inventory on June 30. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $15 per hour. Additionally, Shadee's fixed manufacturing overhead is $10,000 per month, and variable manufacturing overhead is $10 per unit produced. Use the information and solutions presented to complete the requirements. Required: 1. Determine Shadee's budgeted manufacturing cost per shade. (Note: Assume that fixed overhead per unit is $18.) 2. Prepare Shadee's budgeted cost of goods…Shadee Corporation expects to sell 610 sun shades in May and 400 in June. Each shade sells for $148. Shadee's beginning and ending finished goods inventories for May are 65 and 40 shades, respectively. Ending finished goods inventory for June will be 55 shades, Each shade requires a total of $55.00 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to have 120 in direct materials inventory on May 1, 100 poles in inventory on May 31, and 120 poles in inventory on June 30. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $12 per hour. Additionally, Shadee's fixed manufacturing overhead is $9,000 per month, and variable manufacturing overhead is $14 per unit produced. Additional information: Selling costs are expected to be 9 percent of sales. Fixed administrative expenses per month total $1,200. Required: Prepare Shadee's budgeted income statement for the months of May and June. Note: Do not round your…! Required information [The following information applies to the questions displayed below.] Shadee Corporation expects to sell 560 sun shades in May and 330 in June. Each shade sells for $151. Shadee's beginning and ending finished goods inventories for May are 80 and 50 shades, respectively. Ending finished goods inventory for June will be 70 shades. Each shade requires a total of $55.00 in direct materials that includes 4 adjustable poles that cost $10.00 each. Shadee expects to have 130 in direct materials inventory on May 1, 100 poles in inventory on May 31, and 110 poles in inventory on June 30. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $14 per hour. Additionally, Shadee's fixed manufacturing overhead is $12,000 per month, and variable manufacturing overhead is $14 per unit produced. Additional information: Selling costs are expected to be 7 percent of sales. • Fixed administrative expenses per month total $1,700. Required:…
- Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo, which costs $2.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $12.00 per hour. Iguana has the following inventory policies: Ending finished goods inventory should be 40 percent of next month’s sales. Ending direct materials inventory should be 30 percent of next month’s production. Expected unit sales (frames) for the upcoming months follow: March 275 April 250 May 300 June 400 July 375 August 425 Variable manufacturing overhead is incurred at a rate of $0.30 per unit produced. Annual fixed manufacturing overhead is estimated to be $7,200 ($600 per month) for expected production of 4,000 units for the year. Selling and administrative expenses are estimated at $650 per month plus $0.60 per unit sold.Iguana, Inc., had $10,800 cash on hand on April 1. Of its sales, 80 percent is in cash. Of the…! Required information [The following information applies to the questions displayed below.) Shadee Corporation expects to sell 610 sun shades in May and 350 in June. Each shade sells for $144. Shadee's beginning and ending finished goods inventories for May are 70 and 60 shades, respectively. Ending finished goods inventory for June will be 55 shades. Each shade requires a total of $45.00 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to have 130 in direct materials inventory on May 1, 90 poles in inventory on May 31, and 110 poles in inventory on June 30. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $15 per hour. Additionally, Shadee's fixed manufacturing overhead is $9,000 per month, and variable manufacturing overhead is $13 per unit produced. Use the information and solutions presented to complete the requirements. Required: 1. Determine Shadee's budgeted manufacturing cost per shade. (Note:…Wesley Power Tools manufactures a wide variety of tools and accessories. One of its more popular items is a cordless power handisaw. Each handisaw sells for $40. Wesley expects the following unit sales: January 2,200 February 2,500 March 2,700 April 2,500 May 2,100 Wesley’s ending finished goods inventory policy is 35 percent of the next month’s sales. Suppose each handisaw takes approximately 0.65 hour to manufacture, and Wesley pays an average labor wage of $13.50 per hour. Each handisaw requires two plastic components that Wesley purchases from a supplier at a cost of $3.00 each. The company has an ending direct materials inventory policy of 10 percent of the following month’s production requirements. Materials other than the plastic components total $4.50 per handisaw. Manufacturing overhead for this product includes $66,000 annual fixed overhead (based on production of 24,000 units) and $0.90 per unit variable manufacturing overhead. Wesley’s selling expenses are 6 percent of…
- A book publishing company is planning its inventory. The cost to store one book is $4 per month. The cost for a production run is $8 per run and $0.50 per book. The company sells 3,600 books per month. How many should be in a production run to minimize inventory costs?Shadee Corporation expects to sell 630 sun shades in May and 370 in June. Each shade sells for $150. Shadee's beginning and ending finished goods inventories for May are 85 and 50 shades, respectively. Ending finished goods inventory for June will be 55 shades. Each shade requires a total of $60.00 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to have 120 in direct materials inventory on May 1, 100 poles in inventory on May 31, and 100 poles in inventory on June 30. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $13 per hour. Additionally, Shadee's fixed manufacturing overhead is $11,000 per month, and variable manufacturing overhead is $12 per unit produced. Additional information: . Selling costs are expected to be 6 percent of sales. . Fixed administrative expenses per month total $1,400. Required: Prepare Shadee's budgeted income statement for the months of May and June. Note: Do not round…Iguana, Inc., manufactures bamboo picture frames that sell for $30 each. Each frame requires 4 linear feet of bamboo, which costs $2.50 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $12 per hour. Iguana has the following inventory policies: Ending finished goods inventory should be 40 percent of next month’s sales. Ending direct materials inventory should be 30 percent of next month’s production. Expected unit sales (frames) for the upcoming months follow: March 280 April 260 May 310 June 410 July 385 August 435 Variable manufacturing overhead is incurred at a rate of $0.40 per unit produced. Annual fixed manufacturing overhead is estimated to be $7,800 ($650 per month) for expected production of 3,000 units for the year. Selling and administrative expenses are estimated at $700 per month plus $0.50 per unit sold. Iguana, Inc., had $10,900 cash on hand on April 1. Of its sales, 80 percent is in cash. Of the credit…