Determine shadees budgeted manufacturing cost

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Reference no: EM133441095

Case: Shadee Corporation expects to sell 550 sun shades in May and 440 in June. Each shade sells for $160. Shadee's beginning and ending finished goods inventories for May are 80 and 40 shades, respectively. Ending finished goods inventory for June will be 60 shades.

Each shade requires a total of $60.00 in direct materials that includes 4 adjustable poles that cost $5.00 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 $14 per hour. Additionally, Shadee's fixed manufacturing overhead is $10,000 per month, and variable manufacturing overhead is $11 per unit produced.

Use the information and solutions presented to complete the requirements.

Required:

Determine Shadee's budgeted manufacturing cost per shade. (Note: Assume that fixed overhead per unit is $18.)
Prepare Shadee's budgeted cost of goods sold for May and June.

Reference no: EM133441095

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