Rainwater corp expects to sell 560 umbrellas in may and 440

Assignment Help Accounting Basics

Reference no: EM13576854

Rainwater Corp. expects to sell 560 umbrellas in May and 440 in June. Each umbrella sells for $15. Rainwater%u2019s beginning and ending finished goods inventories for May are 70 and 45 units, respectively. Ending finished goods inventory for June will be 50 units. Each umbrella requires a total of $4.50 in direct materials that includes an opening mechanism that the company purchases from a supplier at a cost of $2.00 each. Rainwater wants to have 31 mechanisms on hand at May 1, 23 mechanisms at May 31, and 25 mechanisms at June 30. Additionally, Rainwater%u2019s fixed manufacturing overhead is $1,100 per month, and variable manufacturing overhead is $2.75 per unit produced.

Requirement 1:

Compute the budgeted cost of mechanisms purchased for May and June.

Requirement 2:

Compute the budgeted manufacturing overhead for May and June.

Reference no: EM13576854

Questions Cloud

The lease contract calls for annual prepaid rental payments : on july 1 2008 falk company signed a contract to lease space in a building for 15 years. the lease contract calls for

A commonly used practice of airline companies is to sell : a commonly used practice of airline companies is to sell more tickets than actual seats to a particular flight because

Amos excavating inc is purchasing a bulldozer the equipment : amos excavating inc. is purchasing a bulldozer. the equipment has a price of 109000. the manufacturer has offered a

A lawyer commutes daily from his suburban home to his : a lawyer commutes daily from his suburban home to his midtown office. the average time for a one-way trip is 24 minutes

Rainwater corp expects to sell 560 umbrellas in may and 440 : rainwater corp. expects to sell 560 umbrellas in may and 440 in june. each umbrella sells for 15. rainwateru2019s

John fillmores lifelong dream is to own his own fishing : john fillmores lifelong dream is to own his own fishing boat to use in his retirement. john has recently come into an

A customer has requested that inga corporation fill a : a customer has requested that inga corporation fill a special order for 3000 units of product k81 for 30 a unit. while

Use the rule of 70 to find the approximate doubling time : use the rule of 70 to find the approximate doubling time for a population whose annual growth rate is 0.7 u.s.? and

Do you think variance analysis is a useful tool to employ : 1. what additional information besides simply the variance may be useful to the accountant in evaluating the variance?

User Account

All Pages