Shadee Corp. expects to sell 570 sun visors in May and 430 in June. Each visor sells for $19. Shadee's beginning and ending finished goods inventories for May are 90 and 45 units, respectively. Ending finished goods inventory for June will be 60 units. E8-8 (Algo) Preparing Cost of Goods Sold Budget (LO 8-31) 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 $2.00 each. Shadee wants to have 32 closures on hand on May 1, 22 closures on May 31, and 24 closures on June 30 and variable manufacturing overhead is $2.25 per unit produced. Suppose that each visor takes 0.30 direct labor hours to produce and Shadee pays its workers $9 per hour. Required: 1. Determine Shadee's budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $3.) 2. Compute the Shadee's budgeted cost of goods sold for May and June.

Shadee Corp. expects to sell 570 sun visors in May and 430 in June. Each visor sells for $19. Shadee's beginning and ending finished goods inventories for May are 90 and 45 units, respectively. Ending finished goods inventory for June will be 60 units. E8-8 (Algo) Preparing Cost of Goods Sold Budget (LO 8-31) 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 $2.00 each. Shadee wants to have 32 closures on hand on May 1, 22 closures on May 31, and 24 closures on June 30 and variable manufacturing overhead is $2.25 per unit produced. Suppose that each visor takes 0.30 direct labor hours to produce and Shadee pays its workers $9 per hour. Required: 1. Determine Shadee's budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $3.) 2. Compute the Shadee's budgeted cost of goods sold for May and June.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 20E: Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc.,...

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