Ask Question
20 October, 03:47

Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 30 closures on hand on May 1, 20 closures on May 31, and 25 closures on June 30 and variable manufacturing overhead is $1.25 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 $2.) 2. Determine Shadee's budgeted cost of goods sold for May and June.

+1
Answers (1)
  1. 20 October, 04:45
    0
    Part 1. Determine Shadee's budgeted manufacturing cost per visor.

    Direct Materials 4.00

    Variable Manufacturing Overhead 1.25

    Direct Labor (0.30 hours*$9.00) 2.70

    Fixed Manufacturing Overhead 2.00

    Budgeted manufacturing cost 9.95

    Therefore Shadee's budgeted manufacturing cost per visor is $9.95

    Part 2. Determine Shadee's budgeted cost of goods sold for May and June.

    May June

    Opening Stock of Finished Goods 0 0

    Add Manufacturing Cost of Finished Goods 9.95 9.95

    Less Closing Stock of Finished Goods 0 0

    Cost of Goods Sold 9.95 9.95

    Explanation:

    Part 1. Determine Shadee's budgeted manufacturing cost per visor.

    Manufacturing cost per visor = Direct Material+Direct labor+Manufacturing Overhead (variable + fixed)

    Part 2. Determine Shadee's budgeted cost of goods sold for May and June.

    Cost of goods sold = Opening Stock of finished goods + cost of finished goods manufactured-closing stock of finished goods
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers