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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PiaDeveau PiaDeveau · Answer 1 · 2020-03-11T11:33:23+01:00

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

andromache andromache · Answer 2 · 2022-03-25T15:04:16+01:00

a. The Shadee's budgeted total sales for May and June is $10,800 and $14,400.

b. Shadee's budgeted production in units for May and June is 575 units and 810 units.

a. Total budgeted sales

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

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

b. Total production Units:

We know that

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

So, based on this,

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

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

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