Question

Shadee Corp. expects to sell 600 sun visors in May and 420 in June. Each visor sells for $16. Shadee’s beginning and ending finished goods inventories for May are 65 and 55 units, respectively. Ending finished goods inventory for June will be 50 units.

1.

value:
5.00 points

Required information

Required:
1. Determine Shadee's budgeted total sales for May and June.



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

Answer 1

1.) Budgeted total sales of may and June

Budgeted total sales of may.= Sale units of may * sale price per unit

600*16$= $9600

June= 420* $16= $6750

2.) Budgeted shade's production of units in may and June

Sales units+ Closing stock units of month - opening stock of units of month

For may

Sales units for may 600 units

Opening stock of may 65 units

Closing stock of may 55 units

Production= 600+ 55 - 65 = 590 units

For June

Sales = 420 units

Opening stock of June = 55 units

Note. Closing stock of may will be opening stock of June

Closing stock of June= 50

Production= 420 + 50 -55= 415 units