0 Required information SB Exercise E8-5 to E8-10 [The following information applies to the questions displayed below] E8-10 (Algo) Preparing Budgeted Income Statement [LO 8-3h) Each shade requires a total of $45.00 in direct materials that includes 4 adjustable poles that cost $10.00 each. Shadee expects to have 120 in direct materials inventory on May 1, 100 poles in inventory on May 31, and 110 poles in inventory on June 30. Shadee Corporation expects to sell 590 sun shades in May and 430 in June. Each shade sells for $135. Shadee's beginning and ending finished goods inventories for May are 90 and 55 shades, respectively. Ending finished goods inventory for June will be 70 shades. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $15 per hour. Additionally, Shadee's fixed manufacturing overhead is $11,000 per month, and variable manufacturing overhead is $11 per unit produced. Additional information: . Selling costs are expected to be 11 percent of sales. . Fixed administrative expenses per month total $1,100. Required: Prepare Shadee's budgeted income statement for the months of May and June. Note: Do not round your intermediate calculations. Round your answers to 2 decimal places. . . SHADEE CORPORATION Budgeted Income Statement Required information Additional information: Selling costs are expected to be 11 percent of sales. Fixed administrative expenses per month total $1,100. Budgeted Gross Margin May Required: Prepare Shadee's budgeted income statement for the months of May and June. Note: Do not round your intermediate calculations. Round your answers to 2 decimal places. Budgeted Net Operating Income June SHADEE CORPORATION Budgeted Income Statement May June
0 Required information SB Exercise E8-5 to E8-10 [The following information applies to the questions displayed below] E8-10 (Algo) Preparing Budgeted Income Statement [LO 8-3h) Each shade requires a total of $45.00 in direct materials that includes 4 adjustable poles that cost $10.00 each. Shadee expects to have 120 in direct materials inventory on May 1, 100 poles in inventory on May 31, and 110 poles in inventory on June 30. Shadee Corporation expects to sell 590 sun shades in May and 430 in June. Each shade sells for $135. Shadee's beginning and ending finished goods inventories for May are 90 and 55 shades, respectively. Ending finished goods inventory for June will be 70 shades. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $15 per hour. Additionally, Shadee's fixed manufacturing overhead is $11,000 per month, and variable manufacturing overhead is $11 per unit produced. Additional information: . Selling costs are expected to be 11 percent of sales. . Fixed administrative expenses per month total $1,100. Required: Prepare Shadee's budgeted income statement for the months of May and June. Note: Do not round your intermediate calculations. Round your answers to 2 decimal places. . . SHADEE CORPORATION Budgeted Income Statement Required information Additional information: Selling costs are expected to be 11 percent of sales. Fixed administrative expenses per month total $1,100. Budgeted Gross Margin May Required: Prepare Shadee's budgeted income statement for the months of May and June. Note: Do not round your intermediate calculations. Round your answers to 2 decimal places. Budgeted Net Operating Income June SHADEE CORPORATION Budgeted Income Statement May June
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Do not provide answer in image format
![**Required Information**
SB Exercise E8-5 to E8-10
*The following information applies to the questions displayed below:*
Shadee Corporation expects to sell 590 sun shades in May and 430 in June. Each shade sells for $135. Shadee's inventory of finished goods for May are 90 and 55 shades, respectively. Ending finished goods inventory for June will be 70 shades.
---
**E8-10 (Algo) Preparing Budgeted Income Statement [LO 8-3h]**
Each shade requires a total of $45.00 in direct materials that includes 4 adjustable poles that cost $10.00 each. Shadee expects to have 120 in direct materials inventory on May 1, 100 poles in inventory on May 31, and 110 poles in inventory on June 30.
Suppose that each shade takes three direct labor hours to produce and Shadee pays its workers $15 per hour. Additionally, Shadee's fixed manufacturing overhead is $11,000 per month, and variable manufacturing overhead is $11 per unit produced.
**Additional Information:**
- Selling costs are expected to be 11 percent of sales.
- Fixed administrative expenses per month total $1,100.
**Required:**
Prepare Shadee's budgeted income statement for the months of May and June.
*Note: Do not round your intermediate calculations. Round your answers to 2 decimal places.*
---
**Shadee Corporation**
**Budgeted Income Statement**
| | May | June |
|---------------------|------|------|
| | | |
| | | |
| | | |
| | | |
| | | |
| Budgeted Gross Margin | | |
| Budgeted Net Operating Income | | |](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2b2f6d1e-6332-46ff-aac3-69fac171d186%2F45271790-bf43-4435-bfaf-2ebf5fbccf50%2Fz0l6w57_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Required Information**
SB Exercise E8-5 to E8-10
*The following information applies to the questions displayed below:*
Shadee Corporation expects to sell 590 sun shades in May and 430 in June. Each shade sells for $135. Shadee's inventory of finished goods for May are 90 and 55 shades, respectively. Ending finished goods inventory for June will be 70 shades.
---
**E8-10 (Algo) Preparing Budgeted Income Statement [LO 8-3h]**
Each shade requires a total of $45.00 in direct materials that includes 4 adjustable poles that cost $10.00 each. Shadee expects to have 120 in direct materials inventory on May 1, 100 poles in inventory on May 31, and 110 poles in inventory on June 30.
Suppose that each shade takes three direct labor hours to produce and Shadee pays its workers $15 per hour. Additionally, Shadee's fixed manufacturing overhead is $11,000 per month, and variable manufacturing overhead is $11 per unit produced.
**Additional Information:**
- Selling costs are expected to be 11 percent of sales.
- Fixed administrative expenses per month total $1,100.
**Required:**
Prepare Shadee's budgeted income statement for the months of May and June.
*Note: Do not round your intermediate calculations. Round your answers to 2 decimal places.*
---
**Shadee Corporation**
**Budgeted Income Statement**
| | May | June |
|---------------------|------|------|
| | | |
| | | |
| | | |
| | | |
| | | |
| Budgeted Gross Margin | | |
| Budgeted Net Operating Income | | |
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