Shadee Corp. expects to sell 530 sun visors in May and 370 In June. Each visor sells for $23. Shadee's beginning and ending finished goods inventories for May are 90 and 50 units, respectively. Ending finished goods inventory for June will be 65 units Each visor requires a total of $4.50 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 28 closures on hand on May 1, 18 closures on May 31, and 20 closures on June 30 Additionally, Shadee's fixed manufacturing overhead is $1,400 per month, and variable manufacturing overhead is $1.75 per unit produced. Each visor takes 0.30 direct labor hours to produce and Shadee pays its workers $8 per hour. Additional Information: • Selling costs are expected to be 11 percent of sales. • Fixed administrative expenses per month total $1,600. 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

Shadee Corp. expects to sell 530 sun visors in May and 370 In June. Each visor sells for $23. Shadee's beginning and ending finished goods inventories for May are 90 and 50 units, respectively. Ending finished goods inventory for June will be 65 units Each visor requires a total of $4.50 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 28 closures on hand on May 1, 18 closures on May 31, and 20 closures on June 30 Additionally, Shadee's fixed manufacturing overhead is $1,400 per month, and variable manufacturing overhead is $1.75 per unit produced. Each visor takes 0.30 direct labor hours to produce and Shadee pays its workers $8 per hour. Additional Information: • Selling costs are expected to be 11 percent of sales. • Fixed administrative expenses per month total $1,600. 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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Black Diamond Company produces snow skis. Each ski requires 3 pounds of carbon fiber. The company’s management predicts that 5,500 skis and 6,500 pounds of carbon fiber will be in inventory on June 30 of the current year and that 155,000 skis will be sold during the next (third) quarter. A set of two skis sells for $350. Management wants to end the third quarter with 4,000 skis and 4,500 pounds of carbon fiber in inventory. Carbon fiber can be purchased for $20 per pound. Each ski requires 0.4 hours of direct labor at $25 per hour. Variable overhead is applied at the rate of $13 per direct labor hour. The company budgets fixed overhead of $1,787,000 for the quarter. Prepare the third-quarter direct materials (carbon fiber) budget; include the dollar cost of purchases. BLACK DIAMOND COMPANY Direct Materials Budget Third Quarter Budgeted production Materials needed for production (lbs.) Total materials requirements (lbs.)…
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Shadee Corporation expects to sell 580 sun shades in May and 400 in June. Each shade sells for $134. Shadee's beginning and ending finished goods inventories for May are 60 and 40 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, 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 $13 per hour. Additionally, Shadee's fixed manufacturing overhead is $8,000 per month, and variable manufacturing overhead is $13 per unit produced. Additional information: • Selling costs are expected to be 7 percent of sales. ⚫ Fixed administrative expenses per month total $1,700. Required: Prepare Shadee's budgeted income statement for the months of May and June. Note: Do not round your…