Shadee Corp. expects to sell 600 sun visors in May and 800 in June. Each visor sells for $18. Shadee's beginning and ending finished goods inventories for May are 75 and 50 units, respectively. Ending finished goods inventory for June will be 60 units.

a. Determine Shadee's budgeted total sales for May and June.

b. Determine Shadee's budgeted production in units for May and June.

Question

Hanna Holland

Business

1 February, 08:52

Shadee Corp. expects to sell 600 sun visors in May and 800 in June. Each visor sells for $18. Shadee's beginning and ending finished goods inventories for May are 75 and 50 units, respectively. Ending finished goods inventory for June will be 60 units.

a. Determine Shadee's budgeted total sales for May and June.

b. Determine Shadee's budgeted production in units for May and June.

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Answers (1)

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Porky · Answer 1

Answer and Explanation:

A. Total budgeted sales:

Particulars May (600 units) June (800 units)

Budgeted sales $10,800 $14,400

Note:

Budgeted sales for May = $18 * 600 = $10,800

Budgeted sales for June = $18 * 800 = $14,400

B. Total production Units:

Total production Units = Sales + Ending finish goods - beginning finish goods

May production Units = 600 + 50 - 75 = 575 units

June production Units = 800 + 60 - 50 = 810 units