[The following information applies to the questions displayed below.] Shadee Corp. expects to sell 560 sun visors in May
Posted: Mon Apr 25, 2022 7:45 am
[The following information applies to the questions
displayed below.]
Shadee Corp. expects to sell 560 sun visors in May and 390 in
June. Each visor sells for $23. Shadee’s beginning and ending
finished goods inventories for May are 85 and 45 units,
respectively. Ending finished goods inventory for June will be 60
units.
Each visor requires a total of $5.00 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 35 closures
on hand on May 1, 16 closures on May 31, and 24 closures on June 30
and variable manufacturing overhead is $2.75 per unit produced.
Suppose that each visor takes 0.70 direct labor hours to produce
and Shadee pays its workers $6 per hour.
Additional information:
Required:
Complete Shadee's budgeted income statement for the months of
May and June. (Note: Assume that fixed overhead per unit is
$3.00.) (Do not round your intermediate calculations.
Round your answers to 2 decimal places.)
displayed below.]
Shadee Corp. expects to sell 560 sun visors in May and 390 in
June. Each visor sells for $23. Shadee’s beginning and ending
finished goods inventories for May are 85 and 45 units,
respectively. Ending finished goods inventory for June will be 60
units.
Each visor requires a total of $5.00 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 35 closures
on hand on May 1, 16 closures on May 31, and 24 closures on June 30
and variable manufacturing overhead is $2.75 per unit produced.
Suppose that each visor takes 0.70 direct labor hours to produce
and Shadee pays its workers $6 per hour.
Additional information:
Required:
Complete Shadee's budgeted income statement for the months of
May and June. (Note: Assume that fixed overhead per unit is
$3.00.) (Do not round your intermediate calculations.
Round your answers to 2 decimal places.)