Shadee Corporation expects to sell 540 sun shades in May and 360 in June. Each shade sells for $141. Shadee's beginning and ending finished goods inventories for May are 65 and 60 shades, respectively. Ending finished goods inventory for June will be 65 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, 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 9 percent of sales. • Fixed administrative expenses per month total $1,400.

Shadee Corporation expects to sell 540 sun shades in May and 360 in June. Each shade sells for $141. Shadee's beginning and ending finished goods inventories for May are 65 and 60 shades, respectively. Ending finished goods inventory for June will be 65 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, 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 9 percent of sales. • Fixed administrative expenses per month total $1,400.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 32MCQ

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