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SB Exercise E8-5 to E8-10

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Shadee Corp. expects to sell 500 sun visors in May and 420 in June. Each visor sells for $23. Shadees beginning and ending finished goods inventories for May are 70 and 45 units, respectively. Ending finished goods inventory for June will be 65 units.

E8-7 (Algo) Preparing Direct Labor Budget [LO 8-3d] Suppose that each visor takes 0.20 direct labor hours to produce and Shadee pays its workers $11 per hour. Required: Determine Shadee's budgeted direct labor cost for May and June. (Do not round your intermediate values. Round your answers to 2 decimal places.) Budgeted Direct Labor Cost May June $ 1,049.00 $ 1,064.80 E8-8 (Algo) Preparing Cost of Goods Sold Budget [LO 8-3f] 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 $2.00 each. Shadee wants to have 26 closures on hand on May 1, 15 closures on May 31, and 24 closures on June 30 and variable manufacturing overhead is $2.00 per unit produced. Suppose that each visor takes 0.20 direct labor hours to produce and Shadee pays its workers $11 per hour. Required: 1. Determine Shadee's budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $6.) 2. Compute the Shadee's budgeted cost of goods sold for May and June. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine Shadee's budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $6.) (Round your answer to 2 decimal places.) Manufacturing Cost per Unit Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the Shadee's budgeted cost of goods sold for May and June. (Round your intermediate calculations to 2 decimal places. Round your answers to 2 decimal places.) Budgeted Cost of Goods Sold May June E8-9 (Algo) Preparing Selling and Administrative Expense Budget [LO 8-3g] 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 $2.00 each. Shadee wants to have 26 closures on hand on May 1, 15 closures on May 31, and 24 closures on June 30. Additionally, Shadee's fixed manufacturing overhead is $1,600 per month, and variable manufacturing overhead is $2.00 per unit produced. Each visor takes 0.20 direct labor hours to produce and Shadee pays its workers $11 per hour. Additional information: Selling costs are expected to be 6 percent of sales. Fixed administrative expenses per month total $1,700. Required: Determine Shadee's budgeted selling and administrative expenses for May and June. (Do not round your intermediate calculations. Round your answers to 2 decimal places.) Budgeted Selling and Administrative Expenses May June E8-11 (Algo) Calculating Cash Receipts [LO 8-4] Shadee Corp. expects to sell 580 sun visors in May and 300 in June. Each visor sells for $15. Shadee's beginning and ending finished goods inventories for May are 60 and 55 units, respectively. Ending finished goods inventory for June will be 70 units. It expects the following unit sales for the third quarter: July August September 545 440 450 Sixty percent of Shadee's sales are cash. Of the credit sales, 50 percent is collected in the month of the sale, 38 percent is collected during the following month, and 12 percent is never collected. Required: Calculate Shadee's total cash receipts for August and September. (Do not round your intermediate calculations. Round your answers to the nearest whole dollar.) Total Cash Receipts August September E8-10 (Algo) Preparing Budgeted Income Statement [LO 8-3h] 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 $2.00 each. Shadee wants to have 26 closures on hand on May 1, 15 closures on May 31, and 24 closures on June 30 and variable manufacturing overhead is $2.00 per unit produced. Suppose that each visor takes 0.20 direct labor hours to produce and Shadee pays its workers $11 per hour. Additional information: Selling costs are expected to be 6 percent of sales. Fixed administrative expenses per month total $1,700. Required: Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $6.00.) (Do not round your intermediate calculations. Round your answers to 2 decimal places.) Budgeted Gross Margin SHADEE CORP. Budgeted Income Statement Budgeted Net Operating Income May June