Shadee Corporation expects to sell 570 sun shades in May and 320 in June. Each shade sells for $146. Shadee's beginning and ending finished goods inventories for May are 60 and 55 shades, respectively. Ending finished goods inventory for June will be 60 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 120 in direct materials inventory on May 1, 90 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 $11 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 $14.) 2. Prepare Shadee's budgeted cost of goods sold for May and June.
Shadee Corporation expects to sell 570 sun shades in May and 320 in June. Each shade sells for $146. Shadee's beginning and ending finished goods inventories for May are 60 and 55 shades, respectively. Ending finished goods inventory for June will be 60 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 120 in direct materials inventory on May 1, 90 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 $11 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 $14.) 2. Prepare Shadee's budgeted cost of goods sold for May and June.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Shadee Corporation expects to sell 570 sun shades in May and 320 in June. Each shade sells for $146. Shadee's
beginning and ending finished goods inventories for May are 60 and 55 shades, respectively. Ending finished goods
Inventory for June will be 60 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 120 in direct materials inventory on May 1, 90 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 $11 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 $14.)
2. Prepare Shadee's budgeted cost of goods sold for May and June.
Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Determine Shadee's budgeted cost of goods sold for May and June.
Note: Round your intermediate calculations to 2 decimal places. Round your answers to 2 decimal places.
Budgeted Cost of Goods Sold
May
53,024.50
June
29.779.20
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